should i have a revocable trust?
TRANSCRIPT
• 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