Revocable living trusts also give elders control over the distribution of their assets in a way no other legal vehicle can. "A lot of parents are worried about a child's money-management ability, or they're concerned that a child's marriage seems rocky. Leaving them their inheritance in trust is a lot safer than leaving it to them outright."
Why? A revocable living trust offers what Biteler calls "creditor and predator protection." A properly drafted trust ensures that the assets can't be tapped via a lien to pay a beneficiary's debts, nor will a divorcing in-law be able to lay claim to the assets. It can also prevent children from a first marriage from being intentionally or unintentionally disinherited. For example, if your mother dies and your father remarries, typically your father will hold his assets jointly with his new wife. Without specific provisions, his assets would pass to his second wife at his death. She likely has a will that would pass those assets on to her own children, not her second husband's children. A revocable living trust, in which your father would have named specific beneficiaries, avoids this potential problem.
The bottom line, says Biteler, is that a revocable living trust "allows you to have more control over your assets and money, even when you're gone. You can make sure your assets go exactly where you want them to go."
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Hey LERHODE, Thanks for your comment. I'm sorry to hear you weren't able to find the information you were looking for. If you'd like, you can post any questions you have in our Ask & Answer section here: ( http://www.caring.com/ask ). I hope that helps, take care! -- Emily | Community Manager
DID NOT ANSWER QUESTION. PROCEDURE TO REVOLK A REVOLKABLE TRUST. WRITTEN REVOLK ETC?
Hi emilypinaud, Thanks for you question. If you like, you can post your question in our Ask & Answer section here: http://www.caring.com/ask -- Emily
My mother and father have a living revokable trust..They named me POA and left the house to me. We now live in it together,but their names only appear on the house we got on a VA loan.The man who did the trust says I will also inherit their debt.Car payments credit cards etc. Is this true,and what happens if they do a bankruptcy. My name is not on the house but I am the trustee?
The problem I see is that it is a system, like so many, that fails when the person at the center develops AD or other dementia. At that point his ability to manage the trust is gone and he is ripe for manipulation, which can be by unscrupulous attorneys who set up the trusts. It all hinges on a presumption of competence of the person with assets and a presumption of both honesty and competence of his advisors/attorney, so to me the fact that it ever works well at all is in spite of, not because of, the setup. If there are concerns about symptoms of dementia, or a family history of it, I would be very leery of relying on the declining person's judgment regarding changes to the trust.
Clear writing.
I had heard of a Revokable Trust but, had no true idea. I have a much better understanding of how it works and how important it will be for some folk. Thank you.
Can someone recommend a book on irravocable trusts and living wills etc. I own a home plus whats inside. I've done will's with my father which ended up in probate. Prices of homes have dropped which in CA 99,999 doesnt have to go to probate if you have a will otherwise an attorney cost 4 percent of the first 100,000 and 3 percent on anything over that so I know to avoid a will. Any help would be nice. Thank you
estate planning
This is the first time I read an article about the revokable trusts and it actually made sense to me. There is a wealth of information in your estate planning section! This is such a great website. Thank you!
What is the difference between a Revocable Living Trust and just a Living Trust ?
can a revokable trust be revoked after the grantor dies?
Who was the broker in question ?
Send the broker a letter saying that you are dissatisfied with his service, ask what needs to be done to release the account, and what SEC guidelines he is referring to. Send a copy to the Branch Manager. This would be considered a client complaint, and the SEC requires all client complaints to be kept on file by the firm's Compliance Department and addressed promptly. Watch how fast the firm releases the account and he says good-by to you as a client.
My brother and I are trustees in a trust by our late parents. Now that father has passed, a broker will not release the only account remaining to be settled citing SEC guidelines but not which specific guidelines as to why. Thoughts?