Revocable living trusts offer privacy, streamlined asset transfer, and potential cost savings by avoiding probate court. They enable continuous management of assets if incapacity occurs and allow custom distribution instructions for beneficiaries. For owners of real estate, businesses, or complex financial accounts in Somerset, a trust can reduce administrative burdens and preserve family privacy.
Trusts provide continuous authority to manage assets without court oversight, which benefits families when sudden incapacity or death occurs. Successor trustees can access accounts, collect income, and make distributions as directed, reducing gaps in financial oversight and protecting asset value during transitions.
Hatcher Legal approaches trust planning with attention to practical administration, coordination with business law matters, and clear communication about funding and ongoing maintenance. We work with clients to draft documents that reflect real-life circumstances and reduce friction for trustees and beneficiaries when administering the estate.
We assist successor trustees with tasks such as inventorying assets, completing account transfers, and preparing distributions under trust terms. Practical support reduces administrative errors and can help minimize conflict among beneficiaries by providing clear procedural guidance.
A will provides instructions that take effect after death and typically requires probate to transfer assets, while a revocable living trust holds assets during life and allows them to pass outside probate under trust terms. Trusts also provide mechanisms for management during incapacity, which a will cannot offer because it only becomes effective at death. Trusts tend to improve privacy and administrative efficiency, but they require funding to be effective. A combined approach, using a will with pour-over provisions and supporting powers of attorney, often delivers comprehensive planning tailored to individual circumstances and asset types.
Funding a trust means transferring the legal title of eligible assets into the trust’s name, which can include real estate, bank and brokerage accounts, and business interests. Funding steps often require deeds, beneficiary designation updates, and account re-registration; leaving assets unfunded can result in probate for those items despite having a trust document. Coordination with banks, title companies, and brokerage firms is essential to confirm transfers, and a funding checklist helps individuals track retitling and beneficiary changes. We assist clients with the administrative tasks and documentation needed to complete funding correctly.
Yes, many grantors serve as the initial trustee of their own revocable living trust, maintaining control and access to trust assets while retaining the ability to amend or revoke the trust. Naming trusted successor trustees ensures continuity of management in the event of incapacity or death, while preserving the grantor’s control during lifetime. Selecting successor trustees and providing clear guidance in the trust document reduces potential confusion and administrative delays. It is important to choose individuals or entities capable of handling financial responsibilities and to document alternate selections should primary choices be unable to serve.
Revocable living trusts typically do not remove assets from the taxable estate for federal estate tax purposes because the grantor retains control and the power to revoke the trust. For most clients, the primary benefits are probate avoidance and management during incapacity rather than immediate estate tax reduction. For clients with potential estate tax exposure, trusts can be paired with other planning tools to address tax concerns. We evaluate individual situations and coordinate trust provisions with tax-aware strategies where appropriate to pursue long-term planning goals.
A trust can facilitate business succession by holding ownership interests and providing a planned framework for transfer to heirs or management. Integrating trust ownership with shareholder or operating agreements helps maintain operational continuity and clarifies the mechanism for transferring control and economic benefits upon retirement or death. Working through the details ahead of time reduces disruption to business operations and helps align estate distributions with governance documents. Proper coordination prevents unintended transfer restrictions and supports a smooth transition for employees, partners, and family members involved in the business.
When a grantor becomes incapacitated, a properly drafted revocable trust allows a successor trustee to manage trust assets according to the trust’s terms without court intervention. Paired with durable powers of attorney and healthcare directives, the trust supports comprehensive incapacity planning and minimizes the need for guardianship proceedings. Clear incapacity standards and designated successor trustees ensure timely access to funds for care and ongoing expenses. Early planning and documentation reduce uncertainty for family members and caregivers during a challenging time.
Yes, revocable trusts are designed for flexibility and can be amended or revoked by the grantor while they retain capacity. Common updates include changing beneficiaries, successor trustees, or distribution provisions to reflect marriage, divorce, births, or changes in asset composition. Periodic review is recommended to ensure the trust remains aligned with current goals and laws. If major life or business events occur, prompt updates prevent inconsistencies and preserve the plan’s intended effect.
Trusts can avoid probate for assets properly titled in the trust’s name, but they do not automatically remove all assets from probate. Assets left unfunded, accounts lacking beneficiary designations, or property with inconsistent titling may still require probate administration. Comprehensive planning includes funding the trust, reviewing beneficiary designations, and coordinating other estate documents to minimize probate exposure. Professional guidance helps identify assets at risk of probate and implement corrective steps.
Reviewing trust documents every few years and after significant life events such as marriage, divorce, the birth of a child, changes in business ownership, or a move across state lines helps keep the plan current. Regular reviews ensure funding remains complete and that trustee and beneficiary selections reflect current intentions. Legal and tax changes can also affect planning decisions, so periodic check-ins help identify opportunities to refine provisions, update funding, and maintain consistent coordination with related documents such as wills and powers of attorney.
Bring a list of assets, recent account statements, copies of deeds, business ownership documents, and current beneficiary designations to your planning meeting. Information about family relationships, desired distributions, and any existing estate or business agreements helps tailor the trust to your needs. Providing tax returns and summaries of retirement and investment accounts allows for a fuller assessment of funding needs and potential planning considerations. Preparing documentation in advance makes the initial planning session more productive and helps identify immediate next steps.
