What is a Revocable Living Trust for a Married Couple?

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As a married couple, there are many types of trusts and wills that you might want to conduct research on, so you are able to protect yourself and your assets, regardless of what occurs. 

Here’s a look at one type called a revocable living trust. Keep reading for information on the specifics.

What is a revocable living trust for a married couple?

You may be interested to know about the revocable living trust definition. Essentially, this is a document that is set up to determine what the assets of a person or couple are. 

It allows these items to be placed in a trust, which is monitored by a person that is a trustee.

The terms of who inherits certain property and assets are written in the trust. Since it is revocable, this information can change.

The difference when it comes to irrevocable vs. revocable living trust is that it cannot be changed when it comes to irrevocable trusts. 

This means it will only be valid in the manner it was first written out. Revocable trusts are able to be amended whenever necessary.

What is the purpose of a revocable living trust?

The purpose of creating this type of trust is so you can allow for the care of your assets and property before your death. 

You can decide for yourself how you want your estate divided, write this into a trust, and the trust takes care of this property in the manner laid out.

For more information on estate planning, check out this video: 

How to create a revocable living trust for a married couple?

When you are ready to create a joint revocable living trust, you can look into this topic online, download helpful forms, or even talk to a lawyer for the best advice. 

A professional may be able to tell you the most information regarding the setting up of this type of trust.

Do married couples have different revocable living trust options?

Married couples are able to create joint living trusts or individual living trusts. At times, individual living trusts are the right answer, in the case that you have separate assets or either of you has been married previously.

This is another subject you can talk to a lawyer about, who should be able to provide you with further specifics on both types. They may be able to tell you about a will for married people as well if this is something you are interested in.

Revocable vs. irrevocable living trusts in marriage

There is a major difference between a revocable and irrevocable living trust. A revocable trust can be changed from time to time, while an irrevocable one must be left the way it has been filed.

Your lawyer should be able to tell you more about each type, so you’ll know which one you want to choose for your purposes.

Revocable living trusts vs. living wills

A revocable living trust is a bit different than a living will. For one, if your wishes for your property and assets are written out clearly, they are still valid once you expire. 

For a will, this is not the case. However, a will may be helpful for laying out your medical wishes when it comes to a health emergency or an end-of-life scenario.

This is much the same as when it comes to a revocable living trust vs. will, where you no longer have a say about your property after you pass away when it comes to a will.

5 benefits of a revocable living trust

Here is a look at some of the revocable living trust benefits that you may be interested in.

1. Good for planning

A living trust can be a good idea when you are trying to plan for the future of your family. You get to decide how your assets will be cared for and what assets will be included within the trust.

A living trust vs. revocable trust is the same thing, although there are multiple types of trusts that you may want to discuss with a professional.

2. Helps you make decisions while you’re alive

This type of trust allows you to decide how to split up your assets while you are still alive. You may also give the assets to the people they are intended to go to before you die. This is something different than what a will provides.

The trust can also be changed when necessary, and if things change, that affects your property.

3. Can be kept private

The number of your assets when you have a will may be public but this isn’t the case when you have a revocable trust. 

This means that no one except you and the person that is managing your trust will know the extent of the property contained within the trust.

In other words, you can rest assured that the details are private, so the specifics are unlikely to come up in court documents or other places.

4. Doesn’t incur probate fees

When you have a reading of a will and people receive their inheritance, this costs probate fees. 

A lawyer has to make sure that everyone gets what has been provided for them, which can cost money when it comes to settling up someone’s estate. With trust, this has already been worked out ahead of time.

5. Can be utilized before death

With a trust, you don’t have to wait until you are dead to provide someone with property or assets. This can come in handy if you would like to provide for your kids once they become adults or if you suffer a medical emergency where your family can be cared for properly while you heal.

The specifics of your trust can be set up where they cover all the bases that may affect you or are important to you.

5 disadvantages of a revocable living trust

Pay attention to these joint revocable living trust disadvantages that may affect the decision on whether you want one in your marriage or not.

1. Assets are at risk

With a trust, you may not be protected if you owe people money. This means if you have debts, a creditor might be able to sue your trust for money, which is not the case when it comes to a will.

Be sure to talk to your lawyer about this aspect if you feel that this may affect you and your estate planning. They should be able to talk to you about the details and help you learn how to protect yourself in the proper manner.

2. Can be difficult to maintain

A revocable trust can be hard to maintain, especially if you have many different properties, assets or if you divorce and get remarried again. However, since it is revocable, this means that you are able to make changes whenever you need to.

Of course, each time you change the specifics, this may cost you money.

3. May be expensive to develop

Again, depending on what assets you have, the cost it takes to set up a trust may be expensive. This is especially true if you need to use your lawyer to set it up.

Keep in mind that it is a good idea to talk to your lawyer about this process, however, since it can provide you with the best protection and ensure that the trust is set up properly and without flaws.

4. No tax benefits

There are no tax benefits associated with starting a living trust. However, this is something that you may be expecting since you are interested in placing certain properties into a trust.

This can allow them to go to the person you want them to go to at any time, which may be more important to you than tax write-offs.

5. Must be changed sometimes

In most cases, this type of trust must be changed when things happen in your life. 

For example, if you have more kids than you had when you started the trust or you gain more property, you will need to set up a new trust to protect and lay out your wishes for these new aspects of your life.

This is something that is okay to do, although it will cost money each time you change your trust.

What are marital lifetime revocable trusts?

A marital lifetime revocable trust is the type of trust an individual may want to lay out when they want to provide for their spouse. 

A trust can include details that will help protect their property and make sure that the living spouse has everything they need, even after the death of their partner.

FAQs on revocable living trust for a married couple

Check out further questions on revocable trust for a married couple:

• What is the best trust for a married couple?

The best living trust for married couples may be a revocable living trust. This is because they are able to be changed when necessary, so if assets or circumstances change, the trust itself can be amended. 

It is also a good way to ensure that your family is able to get their inheritance once a couple or spouse passes away.

When it comes to figuring out the best trust for your marriage, you may want to talk to a therapist about your concerns and thoughts regarding this type of estate planning. When you opt for marital therapy, this could help you improve the satisfaction and happiness you experience within your relationship.

• Is a revocable trust marital property?

A living revocable trust is not considered to be marital property in the event of a divorce. In some cases, the person that runs the trust may take a person’s name off of the trust, meaning there would be no assets to split up within the trust.

• How much should a revocable living trust cost?

There’s no way to know precisely what a revocable living trust will cost beforehand. While it will be cheaper if you complete the process yourself, the price will also depend on what assets are present and put into this trust. The price can vary anywhere from $100-$10,000, depending on the circumstances.

• Do you need a lawyer to make a trust?

You do not have to have a lawyer to make a trust if you are willing to do the research and learn as much as you can about the process and how to carry it out. You may want to check out a revocable living trust sample for more information.

However, if you work with a lawyer to make a trust, you can be sure that the process is done correctly without any mistakes. Without mistakes, you can make sure that your wishes will be carried out properly.

Takeaway

There are many things to think about when you are considering setting up a revocable living trust. This type of trust may be the best choice for you to develop when you are concerned about the care of your assets and who they will go to.

Since you are able to discuss what needs to happen to your assets during your life and afterwards, this makes it a bit different than a traditional will.

Always talk to your lawyer for the best advice, but if you would like to make trust on your own, this is possible. 

At the same time, a lawyer should be able to describe what the pros and cons are and let you know which type of trust is best for your household and assets.

Besides that, they will be able to help you amend the trust at times when it is necessary. 

While this may cost you more money, it may also give you the peace of mind you need to know that everything was done in the most professional manner possible. This provides you with legal protection as well.

Consider the advantages and disadvantages of this type of trust when you are working on estate planning in your marriage. It may seem overwhelming, but you don’t have to figure out everything by yourself. Keep this in mind and take your time.