What are the disadvantages of a Living Trust?
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M$5 Answers
• Cost
• No supervision by probate court
• Taxes
• Funding issues
• Time
• Refinancing
• No creditor protection
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M$
You can change just about anything in a living trust, as long as you are alive. The only disadvantage (besides the cost) is that you cannot change it after you are dead.
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M$"A trust is an arrangement under which one person, called a trustee, holds legal title to property for another person, called a beneficiary. You can be the trustee of your own living trust, keeping full control over all property held in trust.
A "living trust" (also called an "inter vivos" trust) is simply a trust you create while you're alive, rather than one that is created at your death."
"Is it a hassle to hold property in a living trust?
Making a living trust work for you does require some crucial paperwork. For example, if you want to leave your house through the trust, you must sign a new deed, showing that you now own the house as trustee of your living trust. This paperwork can be tedious, but the hassles are fewer these days because living trusts have become so common."
There's a lot more detail at my source.
http://www.nolo.com/legal-encyclopedia/faqEditorial-29036.html
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That said, on the plus side, the Trust will function as a legal entity, when you die, the trust will go on so that your heirs don't have to pay inheritence tax
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2) No Supervision by Probate Court. A probate judge won't have jurisdiction in order to make sure your assets are distributed how you want them to be.
3) Taxes. There are only minor differences - a trust pays taxes per calendar year and has a $100 - $300 exemption; estates pay taxes either per calendar or fiscal year and have a $600 exemption.
4) Funding. Trusts take time, effort, and money to fund up front in order to save time, effort, and money for beneficiaries.
5) Spending Money. It can be difficult explaining to cashiers that being trustee of a living trust is acceptable to write a check.
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