For some people who are going through the estate planning process, trying to figure out the best way to set things up is rather difficult. One of the things to consider if you are going through this process is whether a revocable trust is right for your situation. There are several advantages and disadvantages to think about when you are trying to decide if this is an appropriate way for you to set up your estate.
A revocable trust, which is one that can be changed or revoked, enables your loved ones to avoid probate. This can save money and time when they are dealing with your estate. You have the flexibility to decide whom to place over the trust, even if the administrator isn't related to you or lives in another state.
You get to make the instructions about how assets are divided, so you stay in control. The assets don't fall under the trustee's power until you pass away. Unlike a will, which may change automatically if you get divorced, have a child or get married, a revocable trust doesn't change automatically.
All assets that are being covered in the trust have to be registered in the name of the trust. These fees and other costs associated with a revocable trust, such as funding it, are often considered a hindrance.
Deciding if a revocable trust is right for your estate is as big decision, so making sure that you have answers to any questions prior to finalizing your decision is vital. Seeking the legal assistance of someone familiar with trusts in Michigan might help you to get answers to your questions so you can make an informed decision.
Source: The Des Moines Register, "Advantages and disadvantages of trusts" Frank Mokosak, Mar. 31, 2014