Feeling gratitude but not expressing it is like wrapping a present and not giving it. William Arthur Ward
Praise the LORD. Give thanks to the LORD, for He is good; His love endures forever. Psalm 106:1
Is a Revocable Living Trust better than a Will?
The answer to that question is – It depends.
A revocable living trust (RLT) is a legal device that can be used to manage your property during your lifetime and distribute your property after your death. When you create a RLT, you appoint a trustee and give him/her instructions as to how to manage and distribute your property after your death. You in fact legally transfer all of your property to this trustee. Usually the first trustee is yourself and/or a spouse. After the two of you pass on, your successor trustee carries out your instructions for distribution.
Advantages
There is no court probate process with a trust as there is with a will. Obviously this can save your estate quite a bit of money.
Unlike a probate with a will, the whole process can be accomplished in a very short period of time.
In a tax planning trust, you can save on inheritance tax if you so choose. This advantage is not available with a will.
Disadvantages
A Trust costs more upfront than a will and sometimes a probate is not a bad idea. In a probate, it is possible to cut off some of your debts through the process.
Some clients complain that having a Trust is just too complicated, like when they go to refinance their home. The bank often requires the Trustees to deed back to themselves before the bank will allow the refinance. Of course, the solution is just to remember to deed back to yourself as Trustee after the loan process is finished.
If all you want to do is to avoid probate, you could place yourself and another in title as joint with the right of survivorship. Some of these joint ownership devices have their own problems even where they have not been abolished by Oregon law.
If you have questions about Wills, Trusts, or Joint ownership vehicles, please call (503) 363-7334 for an appointment. We do not charge for the initial consultation.
