What is a Revocable Living Trust in Virginia?

A revocable living trust is a trust document created by an individual that has the ability to be changed over time. This type of estate-planning tool is very useful as it helps the beneficiaries of the trust avoid probate and minimize the eventual estate taxes. It also is used to protect the privacy of both the owner of the trust as well as the beneficiaries.

What Are the Benefits of a Revocable Living Trust?

There are many benefits to a revocable trust that can be extremely valuable to you and your family. Unlike a will that only outlines how your estate should be distributed after you die, a revocable trust can be altered or revoked at any time according to the wishes of the grantor, the individual who established the trust. The terms revocable and living trust are actually separate terms that describe the same thing, a trust in which the terms can be altered at any time. Some of the many benefits of a revocable trust include:

• Revocable trusts are not subject to probate court. This saves a considerable amount of time as assets can be legally distributed to the proper heirs without the costs associated with probate, such as estate taxes.
• Revocable trusts have the ability to be created while an individual is alive. This allows them to manage and oversee the trust until they pass away or become unable to do so.
• Revocable trusts can be legally changed or even potentially dissolved per the creator’s decision. This can be legally done without discussing it with anyone else for any reason that they choose.
• Unlike a will that becomes public knowledge after completing the process of probate, the details of a revocable trust remain private even after the assets have been distributed. This works to protect the privacy of the heirs and any assets they may have gained.

What Are the Disadvantages of a Revocable Living Trust?

Even though living trusts are generally considered to be better at eliminating the experience of going through probate and the avoidance of paying estate taxes, there are also disadvantages to creating a revocable trust as well. Some of the disadvantages include:

• A revocable trust does not provide tax benefits. This type of trust does not protect assets from income taxes or estate taxes.
• When a property is held in a trust, it can be more difficult to refinance if it becomes necessary.
• A revocable trust offers no asset protection, and as such, it is not shielded against the reach of creditors.
• This type of estate planning tool can be very time-consuming to create. All of the assets that a person wishes to place in the trust have to be retitled from individual ownership to that of the trust. Any assets that are not legally transferred to the trust must still go through the process involved with probate.

Why Do I Need an Estate Planning Attorney to Help Me?

Because of the complex legal rules that surround estate planning, it is highly recommended that you hire a lawyer who has the knowledge and experience necessary to assist you. As with any legal process, there is a tremendous amount of paperwork that has to be filled out, which can be very complicated and confusing. The attorneys at our law firm can help you create a revocable living trust that is customized to your specific needs and interests. Call our offices and schedule an appointment. We look forward to serving you.