Now Serving
NC · MD · VA
Revocable living trusts offer seamless asset management during incapacity and facilitate transfers at death without public probate proceedings. They provide privacy, flexible beneficiary designations, and continuity for property management. For Virginia residents, trusts can also simplify multi-jurisdictional asset transfers and reduce time spent handling estate administration in state courts after someone passes away.
Trusts provide continuity by naming successor trustees who can step in to manage assets immediately if the settlor is incapacitated or deceased. This continuity reduces disruptions to bill payment, property maintenance, and business operations while the trustee implements the settlor’s instructions under the trust document.
Clients choose Hatcher Legal for thoughtful planning, careful document drafting, and clear communication about options and consequences. Our attorneys help clients identify assets to fund, draft practical trust provisions, and coordinate beneficiary designations so the trust functions as intended across life changes and potential incapacity scenarios.
Life events such as marriage, divorce, births, or business changes warrant trust reviews. We recommend periodic check-ins to confirm beneficiary selections, trustee designations, and asset alignment remain current so the trust continues to advance your objectives over time.
A revocable living trust holds legal title to assets during life and directs how those assets are managed and distributed, typically outside of probate for funded property. A will becomes effective only at death and generally requires probate to transfer title, making the process public and potentially longer. A trust focuses on privacy and continuity. Wills remain important even when a trust is used because a pour-over will can address assets not transferred into the trust. Wills also name guardians for minor children and handle certain probate matters, while trusts provide ongoing management and incapacity planning that wills do not directly address.
A revocable trust itself does not eliminate estate taxes because the settlor retains control and ownership during life, so the trust assets are still included in the taxable estate for federal purposes when applicable. Virginia does not have a separate estate tax, but federal estate tax rules may apply for larger estates, and separate planning may be required to address tax exposure. Clients with estates approaching federal exclusion limits should consider advanced planning techniques in conjunction with trusts, such as credit shelter planning or lifetime gifting strategies. We can coordinate with tax advisors to align trust terms with broader tax planning objectives while maintaining management and incapacity benefits.
Funding a trust typically involves retitling real property deeds into the name of the trust, changing registration on bank and brokerage accounts, and designating the trust as beneficiary where appropriate. Some accounts, like certain retirement plans, may be better left with individual beneficiary designations and coordinated with the trust through separate planning steps. We provide a funding checklist and assist with practical steps and instructions for transfer so that assets are properly recorded in the trust. Completing funding soon after signing the trust prevents unintended probate and clarifies the trust’s authority over assets when needed.
Yes, it is common for the settlor to serve as the initial trustee of a revocable living trust so they retain control over asset management during life. The trust document should also name one or more successor trustees to take over management if the settlor becomes incapacitated or dies, ensuring continuity without court appointment. Choosing successor trustees includes considering availability, financial judgment, and willingness to serve, as well as naming alternates. It is also wise to provide clear trustee powers and guidance within the trust to aid smooth administration when transition occurs.
When the settlor becomes incapacitated, the successor trustee named in the revocable trust steps in to manage trust assets according to the trust terms without the need for court guardianship proceedings. This allows for prompt handling of finances, payments, and property management under the authority granted by the trust document. Coordinating the trust with durable powers of attorney and health care directives ensures comprehensive decision-making authority for both financial and medical matters. Clear documentation of incapacity and successor trustee qualifications helps avoid disputes and facilitates timely actions for the settlor’s care.
A revocable living trust generally does not provide strong protection from the settlor’s creditors because the settlor retains control and ownership during life, so creditors can often reach trust assets. For asset protection from future creditors, other planning tools or irrevocable structures may be necessary depending on circumstances and timing. However, trusts can be designed to include payment and distribution provisions that help protect beneficiaries from creditor claims after the settlor’s death. Careful planning and timing are required to balance control with any creditor protection objectives, and coordination with financial and legal advisors is recommended.
Trust documents should be reviewed whenever there are significant life changes such as marriage, divorce, births, deaths, or major changes in assets and business interests. Periodic reviews every few years also help confirm that beneficiary designations, trustee selections, and funding remain current with your goals and applicable law. Updating the trust promptly after important events ensures that distributions reflect your intentions and that successor trustees are available and willing to serve. Regular maintenance prevents surprises and preserves the effectiveness of the trust over time.
Yes, trusts can hold business interests, partnership shares, and membership interests in companies, which can support continuity and provide a mechanism for orderly succession. It is important to review ownership agreements and partnership or operating agreements before transferring interests to ensure transfers are allowed and do not trigger unintended consequences. Coordination with co-owners and corporate counsel may be necessary to align transfer provisions with business governance. Carefully structured trust language and succession planning can ease management transitions and support business continuity when ownership changes due to incapacity or death.
A pour-over will is a document used alongside a living trust to ensure that any assets not transferred into the trust during life are directed to the trust at death. The pour-over will funnels remaining probate assets into the trust so they can be administered under the trust terms, providing a safety net for incomplete funding. While a pour-over will can help capture overlooked assets, it does not eliminate the need to fund the trust proactively. Assets passing through the pour-over will still go through probate, so completing the funding process during life remains preferable to reduce probate involvement.
Choosing a successor trustee involves evaluating trustworthiness, financial judgment, availability, and the ability to manage administrative responsibilities. Many clients select a trusted family member, friend, or a professional fiduciary and may name co-trustees or alternates to balance familiarity with administrative capacity. It is also helpful to discuss the role with those considered, provide written guidance within the trust, and name successors to avoid gaps. Where complexity is expected, a corporate fiduciary or trusted advisor can assist with recordkeeping and compliance while named individuals address personal or family aspects.
