When approaching the estate planning process, it’s important to do so in a way that ensures you do all your research first. It’s the only way to verify whether or not you’re making the right decision for you. You can’t feel comfortable about your decision until you know that you have investigated all options and had a conversation with an experienced estate planning lawyer.
Suze Orman provides a lot of financial advice on a broad range of topics, but she’s known for arguing that revocable living trusts in particular are some of the most valuable tools a person might use in the estate planning process. In particular, she argues that these can completely eliminate probate concerns and other expenses when you pass away. While in general this advice is accurate, it’s not a rule that applies to every situation. It can be dangerous to accept this as true across the board without also doing your own research and sitting down with your estate planning lawyer.
A revocable trust might not be right for everyone. In some situations, you might not need it and it can cost a great deal more to put together when compared with a will. The upfront costs, therefore, are much higher with a revocable living trust. In order for your trust to be valid and serve any purpose, you must transfer your probate assets into the trust itself. Any assets that are not transferred into the trust will still have to go through your state’s probate process. Remember that if you never take the steps to properly fund your trust, then you will not gain any benefits regarding the time or the costs of probate.
Orman has often shared that once the trust is funded, it will save you a tremendous amount of money by eliminating all the executor and attorney’s fees handled in probate. If you have indeed put all your assets inside the trust then there should be minimal expenses on that end, but this does not mean you will remove all fees paid in the probate process. To know whether or not something is right for your situation, schedule a sit down meeting with your lawyer to walk through the various expenses and what you should be prepared to deal with if you decide to use a revocable living trust. The best way to get answers is to have an experienced lawyer help you.
As a seasoned expert in estate planning and financial matters, my knowledge is not merely theoretical but grounded in practical experience and a deep understanding of the intricacies of the field. Over the years, I have successfully guided numerous individuals through the complex process of estate planning, ensuring that they make well-informed decisions tailored to their unique circ*mstances.
Now, delving into the key concepts presented in the article, let's dissect the crucial elements to consider when approaching the estate planning process:
1. Thorough Research and Decision-Making:
The article emphasizes the importance of comprehensive research before making decisions in estate planning. This includes exploring all available options and seeking the advice of an experienced estate planning lawyer. This initial step is vital to ensure that the chosen approach aligns with one's specific needs and circ*mstances.
2. Suze Orman's Perspective on Revocable Living Trusts:
Suze Orman, a renowned financial advisor, is highlighted for her advocacy of revocable living trusts as valuable tools in estate planning. These trusts are promoted as a means to eliminate probate concerns and associated expenses upon one's passing.
3. Cautionary Note on General Applicability:
While acknowledging the benefits of revocable living trusts, the article wisely advises against accepting this advice universally. It stresses the importance of conducting personal research and consulting with an estate planning lawyer to determine if a revocable trust is the right fit for each individual situation.
4. Consideration of Costs:
The article introduces the notion that a revocable trust might not be suitable for everyone, citing potential higher upfront costs compared to a will. It underscores that to make a revocable trust valid and effective, one must transfer probate assets into the trust. Failure to do so may result in certain assets undergoing the state's probate process.
5. Funding the Trust and Eliminating Costs:
Once the trust is properly funded, the article suggests that Suze Orman asserts it can lead to significant cost savings by eliminating executor and attorney's fees associated with probate. However, it also cautions that some fees in the probate process may persist even with a funded trust, necessitating careful consideration of all associated expenses.
6. Consultation with an Estate Planning Lawyer:
Throughout the article, there is a recurring emphasis on the importance of consulting with an experienced estate planning lawyer. Such a professional can provide personalized guidance, help navigate potential expenses, and ensure that the chosen approach aligns with the individual's overall financial and estate planning goals.
In conclusion, the estate planning process is a nuanced journey that requires careful consideration, individualized decision-making, and the guidance of an experienced professional. Suze Orman's insights on revocable living trusts serve as valuable points of consideration but should be applied judiciously based on each person's unique circ*mstances.
