Revocable living trusts can streamline estate administration by avoiding probate, preserving family privacy, and enabling asset management if you become incapacitated. They provide flexibility to modify beneficiaries or terms while alive, help coordinate with powers of attorney and beneficiary designations, and can reduce time and expense for loved ones who will settle your affairs.
When properly funded, a revocable living trust keeps assets out of probate court, allowing distributions to occur privately according to the trust’s terms. Avoiding probate can save time and administrative costs, maintain family confidentiality about asset values and beneficiaries, and reduce the procedural burdens on surviving loved ones.
Hatcher Legal emphasizes clear communication and practical solutions that reflect each client’s goals and family situation. We draft trust documents that balance flexibility with precise instructions, ensuring successor trustees can administer property efficiently while carrying out your wishes and minimizing friction among beneficiaries.
We offer ongoing review services to update documents as laws and circumstances change and provide guidance to successor trustees during administration. Continued involvement helps prevent obsolete provisions, addresses tax or creditor matters, and ensures distributions occur smoothly when the time comes.
A revocable living trust holds assets in a trust during your lifetime and can provide for management and distribution without probate when properly funded. A will governs distribution of assets that remain in your name at death and typically must go through probate court to be effective. Choosing between a trust and a will depends on privacy concerns, the need to avoid probate, and whether you have out-of-state property or complex family situations. Many clients use both: a trust for major assets and a pour-over will to catch any property left outside the trust.
A revocable living trust itself generally does not change your income or estate tax obligations while you are alive because you retain control and tax attributes. Transfers into a revocable trust are typically disregarded for income tax purposes while you are the grantor. For estate tax purposes, the value of assets in a revocable trust is usually included in your estate. If tax planning is a concern, additional strategies or different trust structures may be needed to address federal or state estate tax exposure.
Funding a trust means retitling assets in the trust’s name, such as recording deeds for real estate, changing titles on bank and brokerage accounts, and assigning ownership of tangible property. It also involves reviewing beneficiary designations on retirement accounts and life insurance to ensure they are coordinated with the trust plan. Some assets, like retirement accounts, often remain in your name but name the trust as beneficiary, so coordination is important. Our firm assists in preparing deeds, transfer documents, and instructions to financial institutions to help complete funding properly.
Yes, many grantors serve as their own trustee so they can continue managing assets during life. Serving as trustee allows for ongoing control and flexibility, and you can name a successor trustee to step in if you become incapacitated or die. When choosing a successor trustee, consider someone who can handle administrative tasks and financial decisions, whether a trusted individual or a corporate trustee where appropriate. Clear instructions in the trust document reduce uncertainty and support smooth administration by the successor.
Moving to another state does not automatically invalidate a properly drafted revocable living trust, but state law differences can affect administration and tax treatment. It is important to review the trust after relocating to ensure it complies with the new state’s legal requirements and addresses any state-specific tax or property considerations. We can review your plan following a move to determine whether amendments or re-execution are advisable to reflect changed residency, properties, or laws and to coordinate any state income or estate tax implications that may arise from the relocation.
Trust documents should be reviewed after major life events such as marriage, divorce, births, deaths, or changes in financial circumstances. Regular reviews every few years help ensure beneficiary designations, fiduciary appointments, and distribution provisions remain aligned with your goals and current law. Updates may be needed for new property acquisitions, changes in family dynamics, business transactions, or shifts in tax law. Proactive reviews reduce the risk of unintended outcomes and help maintain clarity for trustees and beneficiaries.
A revocable living trust offers limited creditor protection because assets remain under the grantor’s control and can generally be reached by creditors during the grantor’s lifetime. However, trusts can be structured with specific spendthrift or protective provisions for beneficiaries to limit their future creditors’ access to distributions after the grantor’s death. For stronger protection from creditors, other trust structures and timing considerations are involved and often require irrevocable arrangements or transferring assets well in advance of potential claims. Discussing your goals allows us to identify the most appropriate tools for asset protection.
A successor trustee is responsible for managing trust assets, paying debts and taxes, and distributing property to beneficiaries according to the trust terms. The trustee must act with fiduciary care, keep accurate records, communicate with beneficiaries, and follow timing and accounting requirements as required by the trust and state law. Trust administration duties include collecting assets, locating beneficiaries, handling creditor claims, filing final tax returns, and distributing assets. Our firm provides guidance to successor trustees to help them fulfill these duties efficiently and in compliance with applicable rules.
A trust can be appropriate for a small estate if avoiding probate, planning for incapacity, or preserving privacy are priorities. Even modest estates can benefit from a trust when the costs and delays of probate would be burdensome to heirs or when property is located in multiple states. That said, for some small estates, a will combined with beneficiary designations and transfer-on-death arrangements may be a lower-cost option. We evaluate the specifics of your assets and family needs to recommend the most cost-effective plan.
The cost to create a revocable living trust varies based on complexity, the need for ancillary documents, and the time required to fund the trust. Simple trust packages are typically less expensive, while plans that coordinate multiple properties, business interests, or complex family dynamics require more detailed drafting and funding assistance. We provide transparent pricing estimates after an initial consultation that assesses your assets and objectives. Costs should be weighed against potential benefits like probate avoidance, reduced administration time, and the peace of mind that comes from clear instructions and coordinated documents.
