Is a Revocable Living Trust the best Estate Planning Strategy? Good morning everyone and welcome back to Finance Friday. It’s the end of the month so you know what that means: Its our Question of the Week segment! Today’s question comes from JJ. JJ asks:
“I’m trying to set up my Estate Planning, and my friends told me to get a Trust instead of a Will. Is this better for me and my situation?”
That’s an excellent question JJ. A Revocable Living Trust allows the Grantor (You) to transfer assets to a trust while you are still living. Here are 3 Pros and 3 Cons to having one:
Advantage:
- Avoids Probate
- Assets are kept Private
- Provides lifetime management of assets and distribution of assets at death.
Disadvantage:
- It’s more expensive and time consuming than creating a will
- Some assets (IRAs, Annuities etc.) can’t be transferred in
- No Creditor Protection
Remember that everyone’s situation is different. Your best bet is to speak with an Estate Planning attorney to see if this is the best strategy for you going forward. Most attorneys allow for a no-fee consultation.
Remember to submit your questions and thoughts on our discussion to hector@hrcfin.com. We may use your question for a future segment. Also, don’t forget to follow HRC Financial on Facebook and LinkedIn for more Finance Friday Tips and Insights.
Thank you again for your time this morning, have a wonderful weekend and stay cool during these dog days of summer!