Why You Might Want to Create a Revocable Trust

In terms of avoiding probate, it is true that there are other methods you might consider, such as assigning assets to designated beneficiaries, or a simply establishing joint ownership. 

However, the advantage of a revocable trust for probate avoidance is that, when it is established and properly funded, it ensures a consistent estate plan. 

Too often, when people rely on designated beneficiaries and joint ownership, the result is a plan that is skewed unintentionally toward one or another beneficiary. The reason for this is that if you have multiple beneficiary designations, and you change one but forgot to change the others, you may create a different distribution than the one you had in mind. By contrast, with a revocable trust, the change can be made once (by means of an amendment to the trust) and this will affect all assets.

Other reasons for creating a revocable trust include:

• Minimizing estate taxes
• Keeping assets available for children until they reach adulthood 

Is Your Trust "Bucket" Funded?

To avoid probate many families have their estate planning attorney create a trust, which is like a bucket a person or family carries through life. 

While carrying the “trust bucket” they can decide what they’d like to place into it, thus “funding” the trust. They can also decide who should carry the bucket for them should they become unable to do so, and also how the assets within the bucket should be distributed when they die.

If a trust is not funded when someone dies, then the probate court must decide how to distribute any assets involved and the family will incur the costs associated.

Read case study...

The Rest of the Story... To Fund or Not To Fund - Are You "All Set?"

As a follow-up to our "tongue-in-cheek" April Fool's Day post, here's an example of an estate planning attorney who drafted a trust, but didn’t assist with any of the funding. The client thought he and his family were "all set" because they had a trust. 

Unfortunately, an unexpected heart attack claimed the client's life, and as it turned out, everything was not "all set." There was nothing in his trust and all of his assets went through probate. His probate estate incurred $20,000.00+ in legal fees to go through the probate process. 

Without funding your trust with assets, your trust will not accomplish your goal of avoiding probate and of making it easier and less expensive for your loved ones and beneficiaries down the road.

The Advantages of a Revocable Trust

People often ask about the advantage of a revocable trust for probate avoidance.

There are several advantages. For example, when it is established and properly funded, it ensures a consistent estate plan. Too often, when people rely on designated beneficiaries and joint ownership, the result is a plan that is skewed unintentionally toward one or another beneficiary. The reason for this is that if you have multiple beneficiary designations, and you change one but forgot to change the others, you may create a different distribution than the one you had in mind. 

By contrast, with a revocable trust, the change can be made once (by means of an amendment to the trust) and this will affect all assets.

Read more: http://www.curtinlawoffice.com/typical-questions.htm

More on Revocable Trusts

In our last post we discussed the value of a revocable trust and how it can help people avoid probate.


Other reasons for creating a revocable trust include:

• Minimizing estate taxes
• Keeping assets available for children until they reach adulthood

Of course there could be additional advantages associated with creating a revocable trust that are unique to a family's specific circumstances. It's best to review your situation with an attorney and discuss the many reasons that revocable trusts are helpful to an estate plan.

Avoiding Probate Part 2: Revocable Trusts

As noted in our February 13 post, there are certain methods that can help you avoid probate. An additional method is to create a revocable trust.


One advantage of a revocable trust for probate avoidance is that, when it is established and properly funded, it ensures a consistent estate plan. Too often, when people rely on designated beneficiaries and joint ownership, the result is a plan that is skewed unintentionally toward one or another beneficiary. The reason for this is that if you have multiple beneficiary designations, and you change one but forgot to change the others, you may create a different distribution than the one you had in mind. 


By contrast, with a revocable trust, the change can be made once (by means of an amendment to the trust) and this will affect all assets.

Myths About Wills & Trusts...

There are a number of things that people often assume about wills and trusts, and sometimes these assumptions can cause problems. With this in mind, we'll begin a short series of listing some of the more common myths associated with wills and trusts.


For a start, many people think if they die without a will, everything will go to their spouse...

Well, this is not necessarily true. If you don't have a will, your estate is distributed according to the intestacy statute and in some cases, it could be divided between your spouse and your children. This issue is especially relevant if you have children from a previous marriage.

Trust Protectors & What You Should Know

Most of us are familiar with the word, "trustee," but may not be familiar with the words "trust protector."

A trust protector is a person the Grantor of a trust appoints to ensure that the trustee of the trust carries out the Grantor's wishes and intent. Unlike a trustee, a trust protector is not involved with the day to day administration of the trust. However, a trust protector does monitor the actions of the trustee and can make important decisions about the operation of the trust or about the distribution of the trust assets.

When are trust protectors useful?

Educational, Support and Special Needs Trusts: Trust protectors can be useful to assist a trustee in connection with the administration of educational, support and special needs trusts where a trustee's discretion is more limited. A friend or family member acting as a trust protector is likely to be familiar with the Grantor's intent and may be able to make better decisions about tough choices about family issues than institutional trustees. A trust protector can also be helpful in making decisions about discretionary distributions from the trust.

No financial experience: When the trustee is not experienced in financial management, the Grantor may want a trust protector to have the power to approve or veto the trustee's investment decisions.

Poor health and/or advancing age: If the Grantor feels that the trustee may eventually be unable to make good decisions at a later time due to poor health or advancing age, the trust protector could have the power to review and approve the trustee's accounts.

Incompetency/Violations: In the event a trustee becomes incompetent or violates the terms of the trust, a trust protector having the ability to remove a trustee and appoint a replacement is helpful.

Changes in circumstance: Trust protectors can be helpful if the terms of the trust need to be changed due to changes in circumstances relating to health, disability and financial situations.

Mediation: As a person who is familiar with the Grantor's wishes, a trust protector can assist with mediating disputes between the trustee and the beneficiary(s) or between the beneficiaries themselves. Having a trust protector is some cases may be a cheaper, faster alternative to resolving these disputes in court.

What are the downsides of having a trust protector?

The appointment of a trust protector can impose additional costs on the trust administration, may conflict with the trustee and could interfere with the efficient management of the trust.

Are trust protectors really necessary?

Sometimes, they are helpful. However, in other cases, appointing a co-trustee or allowing a successor trustee to appoint a subsequent trustee can accomplish the same objective(s). Empowering a special trustee to act under certain circumstances about a particular issue can also be an effective alternative.

If you have any questions regarding trust protectors and whether it would be appropriate to have one in your situation, please feel free to contact our office.