should i have a revocable trust?

1
Creditors cut off Court oversight Discharge of Personal Representative for tax liability Estate may hold S corporation stock Divorce automatically deletes spouse No tax due on income earned pending charitable distribution Can have a fiscal tax year Will Disability management Investment management continuity Segregated assets Trial run for trustee Privacy Expense Less vulnerable Out of state property Easier to do unconventional deals post death Simpler to revise Avoids need for guardian Travels better Living Trust Probate Expense Delay Court oversight Formalities Advantages Disadvantages Courtesy of: Michael H. Wald, Attorney 972-690-9700 Revised February 2004 Expensive upfront No automatic revision for divorce Can’t gift directly from trust No creditor identification No court oversight Funding burden Harder to maintain Cannot hold S corporation stock longer than 2 years Financing problems Possible title insurance problems No cutoff on challenging lawsuit Must elect estate treatment to get some tax benefits

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Page 1: Should I have a revocable trust?

• Creditors cut off• Court oversight• Discharge of Personal Representative for

tax liability• Estate may hold S corporation stock• Divorce automatically deletes spouse• No tax due on income earned pending

charitable distribution• Can have a fiscal tax year

Will• Disability management• Investment management continuity• Segregated assets• Trial run for trustee• Privacy• Expense• Less vulnerable• Out of state property• Easier to do unconventional deals post death• Simpler to revise• Avoids need for guardian• Travels better

Living Trust

• Probate• Expense• Delay• Court oversight• Formalities

Advantages

Disadvantages

Courtesy of: Michael H. Wald, Attorney 972-690-9700 Revised February 2004

• Expensive upfront• No automatic revision for divorce• Can’t gift directly from trust• No creditor identification• No court oversight• Funding burden• Harder to maintain• Cannot hold S corporation stock longer than 2 years• Financing problems• Possible title insurance problems• No cutoff on challenging lawsuit• Must elect estate treatment to get some tax benefits