Estate planning can be a confusing topic for many. In Maryland, when considering the options, people may want to stick to the simplest solutions like a will. However, in some instances, more is needed.
For those who want to put a document in place where they can oversee their assets while they are alive and then distribute them after death while accounting for the possibility of being incapacitated, a revocable living trust might be a viable strategy. Before proceeding, it is important to understand the positives and negatives that accompany it.
How a revocable trust can benefit me and why it might not be a good idea
Revocable trusts can be beneficial in several ways. One is to reduce the importance or outright avoid going through probate. Probate can be time consuming and costly. Assets that would otherwise be part of probate will be in the trust while the person is alive. It is imperative to retitle them when doing so or probate might be necessary. It also does the same for ancillary probate. This is for people who might own real estate in other states.
People may want the revocable trust so they can manage their affairs during their lifetime. If the person is having health issues and is concerned about being unable to oversee their affairs, this can be accomplished with the trust. It is also a way to maintain privacy. Unlike probate where the will is public, the revocable trust will not be.
There are also potential concerns about a revocable trust. First, it can be complex. The attractiveness of a will is due to its simplicity. Anyone can make a will and have it be valid if they follow the fundamental rules.
A trust requires more attention and must be monitored. Funding is a key issue. Once the agreement is signed, the person’s property will need to be transferred to the trust. Titles will need to be changed from the person’s name into the trust’s name. Missing an asset could leave it vulnerable to probate. The trust is costlier than a will and that must be considered. Still, in the long run, that could be outweighed by the positives.
Professional advice can help with estate planning
A revocable living trust can be of great benefit. Despite that, it is vital to be fully aware of the advantages and disadvantages while being simultaneously aware of alternatives. For comprehensive assistance will all aspects of estate planning, it is useful to call for experienced guidance when moving forward.