A Matter of Trust
In my previous blog I spoke about the importance of having a revocable living trust in your estate planning toolkit. This type of trust can do several things for you, such as reducing the amount of taxes and fees your estate will pay, shortening the amount of time that beneficiaries will have to wait to take ownership of assets, and removing all of the transactions from the public eye.
Trusts can be an invaluable tool in your estate plan. Irrevocable trusts are usually used by higher net-worth folks to escape the absolute pillage of their estate by the government. There are also some significant tax advantages found in gifting to these trusts, as well as to charities.
The immediate tax advantages with a revocable living trust are less dramatic. However, for the person with an estate of less than $5 million the living trust is much more commonly utilized. Sometimes people confuse the two types- revocable vs. irrevocable - and the benefits that each kind provides.