Do I Need a Revocable Living Trust?
The revocable living trust can be a real hassle to complete, so it's probably not necessary for Beth, unless she has a lot of assets.
QUESTION: Beth is almost debt free and wants to know if she needs a revocable living trust.
ANSWER: You probably don’t. The only way it makes sense to do a revocable living trust is if you have more than $2 million in assets and that it doesn’t include stuff you may possibly sell. If you do the trust and you have less than $2 million in assets, it’s a big hassle. Every time you want to sell a car, a house, or anything else, a trustee has to sign for it.
However, if you have a piece of property you’re most likely not going to sell and you want to put it in the trust, then go ahead. Just remember, if your assets are less than $2 million, the cost of doing this will not be justified.
Revocable living trust does not replace a will or make you exempt from estate taxes either. It will only help you avoid local probate on large assets that you’re probably never going to sell.