why would i want a revocable living trust?

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  • Learn More About Revocable Living Trusts and Why You May Want to Create a Trust

    to Transfer Your Monetary Assets

    WHY WOULD I WANT A REVOCABLE

    LIVING TRUST?

    DENNIS D. DUFFY Iowa Estate Planning Attorney

    http://www.duffylawoffice.com/estate_planning/index.php/estate-planning/
  • Why Would I Want a Revocable Living Trust? www.duffylawoffice.com 2

    When you are planning your estate you can use a last will to express your final

    wishes regarding the transfer of your monetary assets.

    The last will is the most commonly utilized vehicle of asset transfer in the field

    of estate planning, but it is not your only option. You may want to consider the

    creation of a revocable living trust as an alternative.

    A POPULAR MISCONCEPTION

    Revocable living trusts are often used by those who would like to arrange for

    asset transfers outside

    of probate.

    When you use a last will

    to arrange for the

    distribution of assets

    that were in your

    personal possession at

    the time of your death,

    the property becomes

    probate property at first. The heirs to the estate do not receive their

    inheritances until after the estate has been probated and closed by the court.

    There are some drawbacks that go along with the probate process. For one

    thing, it can be quite time-consuming. The exact duration of probate will vary

    on a case-by-case basis depending on the jurisdiction in question and the nature

    of the circumstances. However, suffice to say that it will take months at

  • Why Would I Want a Revocable Living Trust? www.duffylawoffice.com 3

    minimum. There are cases that are quite complicated that wind up in probate

    for multiple years.

    Probate is not free. There are considerable costs

    that can accumulate during the probate

    process. The court will charge a filing fee, and

    there are legal expenses. The executor of the

    estate is entitled to remuneration for his or her

    time and effort. be necessary, and there may be

    appraisal and liquidation expenses.

    When you add all of this together a noticeable

    portion of the estate can be absorbed during

    probate. Anything that is spent during probate

    would have otherwise gone into the pockets of

    the heirs to the estate.

    If you want your loved ones to receive their

    inheritances in a timely and cost-effective manner, you may want to consider a

    revocable living trust, because the asset transfers will not be subject to the

    probate process.

    ONGOING CONTROL

    With a revocable living trust you retain ongoing control of the assets. As the

    grantor of the trust you can act as the trustee and the beneficiary while you are

    still living. You can change the terms as you see fit. You can even rescind or

  • Why Would I Want a Revocable Living Trust? www.duffylawoffice.com 4

    revoke the trust at any time and re-assume personal possession of the assets

    that you have conveyed into it.

    INCAPACITY PLANNING

    Revocable living trusts are for the most part used to avoid probate. However,

    there is another advantage that you gain when you create a revocable living

    trust.

    A significant percentage of senior citizens become incapacitated late in their

    lives. There are various different causes of incapacity, but the existence of

    Alzheimer's disease alone is enough to make incapacity planning a must.

    Somewhere in the vicinity of 40 percent of people who are at least 85 suffer

    from Alzheimer's disease. If you were to experience Alzheimer's induced

    dementia, you may become unable to handle your own financial affairs.

    When you create a revocable living trust you can name a successor or disability

  • Why Would I Want a Revocable Living Trust? www.duffylawoffice.com 5

    trustee. This trustee would be empowered to

    administer the trust in the event of your

    incapacitation.

    You could name an individual that you know to

    act as the disability trustee if it becomes

    necessary. However, you may want to consider

    the utilization of a professional fiduciary entity

    such as a trust company or the trust

    department of a bank.

    When you use a corporate trustee you gain

    some advantages. The longevity of the trustee is

    not a factor, the assets will be managed with

    expertise, and there is inherit oversight.

    CONCLUSION

    A revocable living trust will facilitate the transfer

    of assets to the beneficiaries outside of the legal

    process of probate. This process is time-

    consuming, and it can be expensive.

    When you create a revocable living trust you do

    not surrender control of the assets while you are

    living.

    FREE REPORT

    Living Trusts: Plan Ahead for Your Family's Future

    Creating Trusts and Living Trusts Put Your Family

    First

    A Living Trust is a very versatile estate planning

    tool - one that can be customized to suit all your

    needs.

    Click to Download Your Free Report Today

    http://www.duffylawoffice.com/estate_planning/index.php/living-trusts/http://www.duffylawoffice.com/estate_planning/index.php/living-trusts/http://www.duffylawoffice.com/estate_planning/index.php/living-trusts/
  • Why Would I Want a Revocable Living Trust? www.duffylawoffice.com 6

    You can also account for the possibility of incapacity by naming a disability

    trustee.

    To learn about the benefits of revocable living trusts in greater detail, arrange

    for a consultation with a licensed estate planning attorney.

    REFERENCES

    AARP

    http://www.aarp.org/money/estate-planning/info-09-

    2010/ten_things_you_should_know_about_living_trusts.html

    Iowa Bar Association

    http://www.iowabar.org/?page=LivingTrust

    http://www.aarp.org/money/estate-planning/info-09-2010/ten_things_you_should_know_about_living_trusts.htmlhttp://www.aarp.org/money/estate-planning/info-09-2010/ten_things_you_should_know_about_living_trusts.htmlhttp://www.iowabar.org/?page=LivingTrust
  • Why Would I Want a Revocable Living Trust? www.duffylawoffice.com 7

    About the Author

    Dennis D. Duffy

    Dennis Duffy combines an extensive background in business with a

    wide range of legal experience to provide his clients with a uniquely

    practical perspective. An attorney since 1989, he practices primarily

    in Estate Planning, Wills, Trusts and Probate. Mr. Duffy also offers

    frequent educational seminars on a variety of estate planning topics

    to both the general public and private groups in the Quad Cities

    area.

    Experience

    Mr. Duffy has been practicing law since 1989, when he joined the general practice firm of

    Bozeman, Neighbour, Patton&Noe in Moline Illinois. In 1990, Mr. Duffy and five other

    attorneys founded the law firm of Anderson & Nelson, with offices in Rock Island, Illinois and

    Davenport Iowa; the firm eventually grew to 12 attorneys, with Mr. Duffy as managing

    partner. He founded Duffy Law Office in 1995.

    Before returning to school for his advanced law and business degrees, Mr. Duffy worked for

    nearly a decade for Per Mar Security & Research Corp. in Davenport, as Vice President.

    Mr. Duffy is a member of the American and state bar associations of both Iowa and Illinois as

    well as the Scott and Rock Island County Bar Associations.

    He is an executive member of the American Academy of Estate Planning Attorneys. He is co-

    author of the book Estate Planning Basics A Crash Course in Safeguarding Your Legacy.

    Also, the American Academy of Estate Planning Attorneys announced that Mr. Duffy was

    honored with the Academy Fellow designation. The Fellow program recognizes Academy

    Members who demonstrate advanced expertise and significant practical experience in the

    estate planning, trust, tax planning, guardianship, probate and estate administration fields.

    Duffy Law Office

    Helping Families Preserve their Wealth

    www.duffylawoffice.com

    1840 E. 54th Street

    Davenport, IA 52807

    http://www.duffylawoffice.com/estate_planning/index.php/living-trusts/
  • Why Would I Want a Revocable Living Trust? www.duffylawoffice.com 8

    (563) 445-7400

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