I would like to know what disadvantages there may be to starting a Living Trust. I do not own any real estate. All my assets are in bank accounts, cd's, savings bonds and 2 year Treasury notes. I believe the main advantages to a Living Trust is the avoidance of probate and the delay accompanying probate.
1 Answer from Attorneys
Disadvantages of Living Trust
Facts: I do not own any real estate. All my assets are in bank accounts, cd's, savings bonds and 2 year Treasury notes.
Q. What are the disadvantages to starting a Living Trust?
A. The hassel of reconveying all your assets into the trustee's/trust's name; Paperwork; limited probate notice and payment of debts; concern regarding the choice of trustee [if other than yourself] or sucessor trustee; education of those who deal with trust assets and the proper language to use. Trusts do offer privacy, immediate sucession to assets, much lower probate costs, and the ability to have "Death Hand Control" after you are gone so that assets can't be squandered or wasted by someone not used to dealing with money- the "Novo Riche".