Many Pennsylvania residents know the importance of estate planning. One way to plan your estate is through a revocable living trust, but you'll want to find out if this type of trust is right for your estate. Here are the pros and cons of revocable living trusts.
Pros of a revocable living trust
One of the biggest advantages of a revocable living trust is that it helps you avoid going through probate. With a living trust in place, it can transfer property to others after you pass away. A living trust is also helpful if you want to avoid your loved ones going through a court-supervised guardianship.
If you want to keep your estate planning matters private, you might consider choosing a living trust. Since a living trust doesn't have to go through probate, there are no worries about any of your information becoming public record.
Cons of a revocable living trust
The first disadvantage of a living trust is that it's often time-consuming to set up. Most people find that properly setting up a trust takes far longer than creating a will. You'll also still need to create a pour-over will, which helps protect any unfunded assets that aren't in your living trust.
Another con of a living trust is that your heirs have more time to contest it. In most cases, the limit for challenging a last will and testament ranges from 30 to 120 days. With a living trust, your heirs can have as long as a year to contest it.
There are several pros and cons associated with a revocable living trust, so it's worth learning more about to determine if it's right for your needs. If you need help planning your estate, it might be the right time to contact an estate planning lawyer.