Trust Advantages and Disadvantages

Is a revocable trust right for you?  Here are some advantages and disadvantages:

Advantages

• Avoid the cost and delay of probate.        
• Property remains available to be used for your benefit during a disability.  
• You remain in control of your assets until you die, then a successor trustee distributes your assets to named beneficiaries.   
• Revocable trusts may allow flexibility in naming out-of-state individuals or trust companies as primary administrator after your death.  
• There is no need to reregister securities after death if assets were transferred into the trusts name.

Disadvantages

• Reregistering property in the name of the trust may be burdensome and involve filing fees. 
• Creditors may have access to the trust.   
• Revocable trusts costs substantially more to establish than a Will.    
• Unlike Wills, revocable trusts may not change automatically upon divorce, marriage, or birth of a child.

See Frank Mokosak, Advantages and Disadvantages of Trusts, The Des Moines Register, March 31, 2014.