FAQs About Revocable Living Trusts
- What is a revocable living trust?
A revocable living trust is a legal document that you create while you are alive. It allows you to transfer ownership of your assets to the trust, and then you can designate who will receive those assets after you die. The trust can be changed or revoked at any time while you are alive.
- Why should I get a revocable living trust?
There are many reasons why you might want to get a revocable living trust. Some of the benefits include:
Avoiding probate: Probate is the legal process of transferring assets to your heirs after you die. It can be a long and expensive process, and it can delay the distribution of your assets to your heirs. A revocable living trust can help you avoid probate altogether.
Protecting your assets from creditors: If you have creditors, they may be able to seize your assets after you die. A revocable living trust can protect your assets from creditors.
Providing for your loved ones: A revocable living trust can help you make sure that your loved ones receive your assets in the way that you want them to.
Controlling your assets during your lifetime: A revocable living trust allows you to control your assets during your lifetime. This means that you can decide who can access your assets and how they can be used.
Flexibility to change your trust: A revocable living trust is flexible. You can change the trust at any time while you are alive. This means that you can update the trust to reflect changes in your life, such as getting married, having children, or changing your beneficiaries.
- How much does a living trust cost?
The cost of a living trust will vary depending on the size of your estate and the complexity of the trust. However, you can expect to pay between $1,000 and $5,000 for a basic living trust. At Linn Legal, we give every client a quote upfront so that they know exactly how much their trust work will cost.
- Is a living trust document ever made public, like a will?
No, a living trust document is not made public when someone dies. It is a private document that is only accessible to the trustee and the beneficiaries of the trust.
- If I make a living trust, do I still need a will?
Yes, you still need a will even if you have a living trust. A will is important for naming a guardian for your minor children and for making other important decisions about your estate.
- Can a living trust reduce estate taxes?
Yes, a living trust can help you reduce estate taxes. However, the extent to which a living trust can reduce estate taxes will depend on the size of your estate and your individual circumstances. Ohio does not have an inheritance tax and the federal inheritance tax exemption is generous–in 2023, the first $12,920,000 for an unmarried person who dies is not taxed at all.
- What are the drawbacks of a revocable living trust?
The drawbacks of a revocable living trust are relatively minor. They include the cost of setting up a living trust and the need to keep the trust document updated.
- How does a revocable living trust work?
A revocable living trust works by transferring ownership of your assets to the trust. The trust then holds those assets for the benefit of you and your beneficiaries. When you die, the trustee of the trust will distribute the assets to your beneficiaries according to the terms of the trust.
- How do I know I need a living trust?
If you have any significant assets, you should consider getting a living trust. A living trust can help you avoid probate, protect your assets from creditors, and provide for your loved ones in the way that you want them to be provided for.Contact Us