Do I need a revocable living trust?

If you have been paying attention to online articles about estate planning, you probably have been led to believe that only fools use wills and that revocable living trusts are the responsible way to go. I would like to offer you another viewpoint, one that is echoed by many legal professionals: Generally speaking, for most people living in Washington state, a revocable living trust is unnecessary and could end up costing you more to create and administer than would a simple will, without adding any significant benefit.

But isn’t probate so-o-o expensive? Yes, probate can be costly if you live in a state, like California, that mandates the fee paid to attorneys for handling probate. The good news for Washington residents is that there is no mandated fee; in fact, our state has one of the simplest probate systems in the nation. Assuming that your will gives your personal representative the necessary powers, that individual is allowed to act with complete authority and without court intervention on nearly all matters. That results in a significant savings of both time and money.

Adding to that, a revocable living trust carries its own costs. Beyond the initial expense of creating the trust, there are ongoing costs associated with maintaining the trust, like tax reporting, trustee fees, transfers of real property titles, and retitling of financial accounts. A revocable living trust can be worth the extra expense in certain situations, such as if your estate includes property in other states or countries or if it includes an ongoing business concern. But it is not a one-size-fits-all solution, and so I recommend that you keep this is mind when you consult with your estate planning professional. You may find that, in your situation, simpler is better.

Please note: I am not an attorney ... and in this post I am only offering some ideas to consider if you are contemplating using a revocable living trust as part of your estate planning, perhaps giving you some questions to raise with your legal professional.