What are the costs and advantages of a living trust?

A living trust is an alternative to the more time-consuming probate process and allows for an easier transfer of assets in case you become incapacitated or die.  One of the main benefits of a living trust is that you can transfer just about any asset you own in your name alone (joint assets with a right of survivorship are not subject to probate) without the attending hassles and costs of probate.  However, note that is always feasible to have a will in addition to your living trust in case there are assets that you neglected to include in your trust before your death.  A living trust is very flexible, allowing you to designate when and how you want your assets divided and what you want done in case of incapacitation (including what type of long-term care you desire).  The trust remains revocable during your lifetime and while you are not incapacitated; once you die, it becomes irrevocable.

For smaller estates, drawing up a living trust might entail just filling out forms; however, in cases where the assets are many, the process is more complex and time-consuming, and it’s advisable to consult with a probate attorney.  As for living trust costs, when you die, your trust assets are subject to federal estate taxes although your attorney can find measures to offset these taxes.  Also note that while you are alive, your trust does not protect your assets from creditors or lawsuits.  As for filing fees and other attendant living trust costs, these vary from state to state and the size of your estate.  Again, it is best to consult with a good wills and trust attorney.