Minnesota Revocable Living Trust Attorneys
Helping Clients Plan for Their Future
When people are considering how they want to leave their assets to their loved ones, they often consider the use of a revocable living trust to avoid the probate process.
A revocable living trust is a legal agreement that allows an individual to transfer their assets to their beneficiaries after their death. However, unlike a will, a living trust is a legally binding contract that allows an individual to make changes to the trust agreement throughout their lifetime. While a will goes through probate, a living trust does not, which can save time and money for the beneficiaries of the estate.
When you work with our revocable living trust lawyers in Minnesota at Guttman Law, PLLC, we can help you create a trust that meets your needs and protects your assets.
Drawbacks to a Revocable Living Trust
Cost and Complexity: Creating a revocable living trust can take more time and money than writing a will. This procedure entails re-titling assets to bring them under the ambit of the trust. Failure to do so may result in probate of these assets, albeit there are exceptions, such as retirement plans and insurance policies.
Revocable living trusts do not provide immediate tax benefits, unlike irrevocable trusts, in which authority over assets is given up. Because you retain ownership of assets throughout your life, all income generated is recorded and taxed on your personal tax return.
Limited Creditor Protection: Revocable living trusts provide less creditor protection than irrevocable trusts. Due to the fact that you retain some authority over your assets in a revocable trust, they may not be totally secure from creditors.
Call us at (612) 324-4055 or complete our form to schedule a free initial consultation.