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

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

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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

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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

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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

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A Living Trust is a very versatile estate planning

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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

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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

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(563) 445-7400