Establishing a revocable living trust can reduce the time and expense associated with probate, keep family affairs private, and create a clear framework for managing assets if you become incapacitated. For business owners it can support succession planning and continuity. Trusts also allow tailored distribution terms and can simplify asset transfers across state lines where applicable.
A revocable trust can provide an immediate mechanism for managing real estate and business assets during incapacity and after death, reducing the need for court-appointed conservatorship or lengthy administrator actions. This continuity minimizes disruption to operations and ensures property and contractual obligations are handled promptly and consistently.
Hatcher Legal works with clients to create clear, durable trust documents that reflect family priorities and business arrangements. Our approach emphasizes coordination with financial and title professionals, thorough funding checks, and practical instructions that make administration straightforward for successor trustees and reduce potential disputes among beneficiaries.
We provide successor trustees with written instructions, sample forms, and a contact list for financial institutions and advisors. Clear documentation supports prompt decision-making, compliance with trust terms, and effective communication with beneficiaries during administration and distribution phases.
A revocable living trust is a legal arrangement where you place assets into a trust you control during your lifetime and name someone to manage or distribute them upon incapacity or death. Unlike a will, a funded trust can allow assets to pass without probate and keeps distributions private rather than becoming part of public court records. Wills become effective only after probate and often require court supervision, while trusts provide continuous management if you are unable to act. Both documents can work together: a pour-over will captures any assets unintentionally left out of the trust, ensuring they are eventually transferred into it for administration.
Yes. When you create a revocable living trust you typically serve as the initial trustee and retain control over trust property, including the ability to buy, sell, or use assets as before. Because the trust is revocable, you may amend or terminate it and retain income tax responsibilities and access to assets during life. Retaining control allows flexibility for changing family or financial circumstances. It also means that the trust does not provide the same asset protection as an irrevocable arrangement while you are alive and in control, so planning goals should be matched to the appropriate trust type.
A revocable living trust generally does not provide direct federal estate tax reduction because the assets are still counted as part of your estate for tax purposes while you own and control them. However, trusts can be part of a larger strategy to manage estate tax exposure, especially when combined with other planning vehicles or marital trusts when appropriate. For most households, the primary benefits of a revocable trust are probate avoidance, privacy, and incapacity planning rather than immediate tax savings. If estate tax planning is a priority, advisors will discuss additional structures or combined approaches tailored to your circumstances.
Yes. To achieve the operational advantages of a trust, such as avoiding probate for particular assets, you must fund the trust by retitling real estate into the trust’s name and updating account registrations where appropriate. Some assets, like retirement accounts, typically transfer via beneficiary designation and require coordinated changes rather than retitling. Incomplete funding is a common oversight that undermines the trust’s effectiveness. A funding checklist, deed preparation, and coordination with banks and brokerage firms help ensure the trust holds the intended assets and functions as designed when needed.
A successor trustee is named in the trust document and steps into management immediately if the trustmaker becomes incapacitated or dies. The successor trustee has the legal authority to manage trust assets, pay bills, and make decisions specified by the trust terms without needing a court-appointed guardian or conservator, which speeds access and continuity. To make the transition smooth, the trust should include clear instructions and contact information for advisors and institutions. Providing successor trustees with orientation materials, account lists, and relevant credentials helps them fulfill duties efficiently and with confidence.
A revocable living trust typically does not shield assets from creditors while the grantor controls and can revoke the trust, because the grantor’s access makes the assets reachable for creditor claims. Asset protection requires different planning tools, often involving irrevocable arrangements or business entity structuring tailored to legal and tax rules. Nevertheless, trusts can be designed to protect beneficiaries’ interests after the grantor’s death by including spendthrift provisions or discretionary distribution terms that limit direct beneficiary control. These post-death protections can help preserve assets for intended long-term purposes.
A pour-over will works alongside a living trust to ensure any assets not transferred into the trust during life are transferred into it at death. It acts as a safety net so that unintended or newly acquired property passes to the trust for administration under its terms rather than becoming subject to probate under state intestacy rules. Even with a pour-over will, the goal remains to fund the trust during life to avoid probate delays. The pour-over will handles the residual matters, but properly retitling significant assets into the trust is the most effective way to achieve probate avoidance.
Review your trust and related documents after major life events such as marriage, divorce, birth of children or grandchildren, significant changes in asset values, business transitions, or a move to a different state. A periodic review every few years helps ensure beneficiary designations, trustee choices, and distribution terms reflect current circumstances and legal developments. Updating documents reduces the risk of unintended outcomes and supports practical administration. Routine reviews also allow coordination with tax planning and updated beneficiary designations for retirement accounts and life insurance to keep the overall estate plan aligned.
After your death a successor trustee must gather trust assets, notify beneficiaries and creditors as required by law, pay valid debts and taxes, and distribute property according to the trust terms. Trustees have a duty to keep accurate records and act impartially in administering the trust for the benefit of all designated recipients. Trustees may also need to work with accountants, appraisers, and attorneys to settle estate matters, prepare inventories, and file tax returns. Clear instructions and an organized asset list provided before death significantly ease the trustee’s workload and reduce potential disputes among heirs.
Trusts can play an important role in business succession by holding ownership interests, specifying buy-sell arrangements, and directing how management transitions should occur. Including business transition provisions in a trust helps ensure ownership moves according to your wishes while potentially providing liquidity mechanisms and instructions for continued operations or orderly sales. Coordination with corporate documents and shareholder agreements is essential so the trust’s provisions work harmoniously with existing governance structures. Careful drafting helps prevent conflicts between business agreements and estate documents and supports a smooth transfer of control when the time comes.
