Revocable trusts (sometimes called “living trusts”) are heavily promoted these days. When you create such a trust, you can remain in control of any assets transferred into the trust. Advantages of revocable trusts include:
* Incompetency protection: If you become incapacitated, assets in the trust will pass quietly to a successor trustee. Your family won’t need a court hearing to appoint a guardian.
* Probate avoidance: At your death, trust assets will pass immediately to the parties named in the trust. This may save your heirs time and expense.
If you are interested in these benefits, a revocable trust can be valuable. Be sure that you re-title assets so that they are owned by the trust. If you retain ownership of any assets, they will not be turned over to a successor trustee if you become incapacitated and they will be subject to probate at your death.