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Revocable Living Trust (RLT)
Posted on 2/24/26 at 9:12 am
Posted on 2/24/26 at 9:12 am
I am considering using this in order to avoid probate procedures for my children. What are the pitfalls/advantages?
6
Posted on 2/24/26 at 9:35 am to BigLSUNut
Advantages of a Revocable Living Trust
Avoids Probate
Assets in a revocable living trust do not go through probate, which can be a lengthy and costly process. This allows for quicker distribution to beneficiaries.
Maintains Privacy
Unlike wills, which become public records during probate, a revocable living trust keeps your assets and their distribution private.
Control Over Assets
You can manage and amend the trust during your lifetime. This flexibility allows you to change beneficiaries or terms as needed.
Continuity During Incapacity
If you become incapacitated, a successor trustee can manage the trust without needing a court-appointed guardian, ensuring your affairs are handled smoothly.
Pitfalls of a Revocable Living Trust
No Asset Protection
Revocable living trusts do not protect assets from creditors or lawsuits. Since you retain control, assets are still considered part of your estate.
Upfront Costs and Effort
Setting up a revocable living trust can be more expensive than creating a will due to legal fees. Additionally, you must retitle assets into the trust, which requires time and effort.
Limited Tax Benefits
These trusts do not provide tax advantages. Assets in a revocable trust are still part of your taxable estate and do not reduce income tax liabilities.
Potential for Incomplete Funding
If not all assets are transferred into the trust, those left out may still require probate, undermining the trust's purpose. A "pour-over will" can help catch these assets but adds complexity.
Understanding these advantages and pitfalls can help you determine if a revocable living trust is suitable for your estate planning needs.
Hope this helps you. It's pretty simple process.
Avoids Probate
Assets in a revocable living trust do not go through probate, which can be a lengthy and costly process. This allows for quicker distribution to beneficiaries.
Maintains Privacy
Unlike wills, which become public records during probate, a revocable living trust keeps your assets and their distribution private.
Control Over Assets
You can manage and amend the trust during your lifetime. This flexibility allows you to change beneficiaries or terms as needed.
Continuity During Incapacity
If you become incapacitated, a successor trustee can manage the trust without needing a court-appointed guardian, ensuring your affairs are handled smoothly.
Pitfalls of a Revocable Living Trust
No Asset Protection
Revocable living trusts do not protect assets from creditors or lawsuits. Since you retain control, assets are still considered part of your estate.
Upfront Costs and Effort
Setting up a revocable living trust can be more expensive than creating a will due to legal fees. Additionally, you must retitle assets into the trust, which requires time and effort.
Limited Tax Benefits
These trusts do not provide tax advantages. Assets in a revocable trust are still part of your taxable estate and do not reduce income tax liabilities.
Potential for Incomplete Funding
If not all assets are transferred into the trust, those left out may still require probate, undermining the trust's purpose. A "pour-over will" can help catch these assets but adds complexity.
Understanding these advantages and pitfalls can help you determine if a revocable living trust is suitable for your estate planning needs.
Hope this helps you. It's pretty simple process.
Posted on 2/24/26 at 10:58 am to BigLSUNut
You should probably speak with an estate planning attorney. Are you in Louisiana? If so, it has always been my understanding that trusts in Louisiana don't provide some of the benefits (like skipping probate) that they have in common law jurisdictions. I am no expert, so take that with a grain of salt.
Posted on 2/24/26 at 11:01 am to BigLSUNut
Get an attorney for 2000.
Also have atty include a pour over will.
Other helpful info.
Also have atty include a pour over will.
Other helpful info.
This post was edited on 2/24/26 at 11:03 am
Posted on 2/24/26 at 11:10 am to jfw3535
quote:
You should probably speak with an estate planning attorney. Are you in Louisiana? If so, it has always been my understanding that trusts in Louisiana don't provide some of the benefits (like skipping probate) that they have in common law jurisdictions. I am no expert, so take that with a grain of salt.
Important part. It varies by state if you need or do not need one, however you can always get one.
In Texas you are really do not need one, unless you just want privacy and/or have a complex wealth portfolio. Texas probate is fast and cheap to do. In Mississippi you want a trust over a will as it is a slow process run through Chancery Court
Since you are in LA it appears
quote:
Louisiana’s estate laws differ from every other state because the legal system is based on the Napoleonic Code, not common law. This impacts probate (called succession) and the usefulness of trusts. Whether a trust makes sense depends on your goals, family situation, and estate complexity.
Talk to that estate planning attorney
Posted on 2/24/26 at 4:17 pm to BestBanker
Thanks for this information
Posted on 2/24/26 at 5:49 pm to BigLSUNut
The big benefit is avoiding probate.
Depending on state, that may or may not be a big desk.
Big cost is the cost to set up sbd aggravation of retitling assets
Depending on state, that may or may not be a big desk.
Big cost is the cost to set up sbd aggravation of retitling assets
Posted on 2/24/26 at 8:11 pm to BigLSUNut
Pay for trust or pay for probate. Pick your poison.
Posted on 2/25/26 at 7:00 am to BestBanker
Doesn’t a RLT also allow you to control the assets in the event something happens to the person the trust is for? For example, if something happens to a married child’s trust, it ensures the trust falls to their children, instead of the spouse and possibly their new spouse?
Posted on 2/25/26 at 7:13 am to Dandaman
quote:
Pay for trust or pay for probate. Pick your poison.
Most people pay for both because they don’t know wtf they’re doing.
Posted on 2/25/26 at 7:36 am to slackster
quote:
Most people pay for both because they don’t know wtf they’re doing.
This cannot be stated emphatically enough.
Posted on 2/25/26 at 8:38 am to LSUFanHouston
quote:
Big cost is the cost to set up sbd aggravation of retitling assets
Not my experience. It costs $100 to retitle a piece of property. A deed is a 1 page document that transfers ownership. Non-real estate assets have separate forms, but most can be done for free.
Posted on 2/25/26 at 9:15 am to Free888
I think you may be referring to the asset protection feature, in the event of a grantor's child going through a divorce proceeding. Yes. Assets owned in trust for a beneficiary are not subject to civil claims.
This post was edited on 2/28/26 at 8:41 am
Posted on 2/25/26 at 4:17 pm to LSUFanHouston
quote:
Big cost is the cost to set up sbd aggravation of retitling assets
Many employers offer prepaid legal as an option so my wife had that. It cost us about $1k for an attorney from their list to do the Trust, Will, AHD, and POA. He also filed the Deed paperwork for my properties with the state just for the fees charged plus priority mail cost.
You're definitely right on the annoyance of retitiling. Some were easier than others, but overall it's not that bad. And once it's done you won't think back on the aggravation.
Posted on 2/26/26 at 12:44 pm to Sho Nuff
quote:
You're definitely right on the annoyance of retitiling. Some were easier than others, but overall it's not that bad. And once it's done you won't think back on the aggravation.
It’s not the initial set up that gets people, it’s doing it on all or nearly all of your accounts/assets going forward that is the problem.
Dying in Louisiana with more than $125,000 outside of the trust- which can easily be a couple nice cars and a boat or something - and you’re still going to have to do a full succession.
There are reasons to do a revocable trust, and avoiding probate is one of them, but if it is your sole reason you really have to stay on top of it.
Posted on 2/26/26 at 4:04 pm to slackster
quote:
It’s not the initial set up that gets people, it’s doing it on all or nearly all of your accounts/assets going forward that is the problem.
I'm not planning on buying property in the future, but I guess cars are something to consider.
ETA: I'm not in LA but the majority of the estate is being left to my siblings who are in LA.
This post was edited on 2/26/26 at 4:06 pm
Posted on 2/28/26 at 7:23 am to slackster
I no longer live in La. but my will states that any possessions not in my trust convert to trust ownership upon death. Doesn't this address this issue? I must admit that I was not impressed with the attorney we used. Several friends recommended her, but the lady couldn't write a sentence without a misspelled word.
Posted on 2/28/26 at 8:40 am to KWL85
No, a revocable living trust (RLT) does not automatically convert assets to trust ownership at death; assets must be funded into the trust during the grantor's lifetime or designated to transfer to the trust through a will or beneficiary designation. If not properly funded, the assets may go through probate instead.
Posted on 3/1/26 at 11:12 am to BigLSUNut
quote:
am considering using this in order to avoid probate procedures for my children. What are the pitfalls/advantages?
I was looking through county tax records and saw that lots of properties are in RLT’s in that area. I did some research and if I recall there are other strategies to avoid probate, and the RLT makes the most sense if your assets are well over $5 million.
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