No. Perhaps one of the most common myths about revocable trusts is that, on their own, they can help people avoid estate taxes. There are trusts that help people avoid estate taxes, and revocable trusts are often used in conjunction with these trusts, but a revocable trust cannot save taxes all by itself.
Yes. A revocable trust is usually accompanied by a “pour-over” will, which is a simple will that essentially says “I give everything to my revocable trust.” This can be useful when someone creates a revocable trust but does not place every asset into the trust. The will takes anything left over and “pours” it into [...]
Many people think that a revocable trust is uniformly “better” than a will. The truth is, revocable trusts are not one-size-fits-all. Revocable trusts are excellent vehicles for certain people, and virtually useless for others.
A revocable trust is perhaps the most commonly used trust in estate planning. In many ways, the language used in a revocable trust is similar to the language used in a will. The person establishing the trust—called the grantor—directs particular assets to pass to particular beneficiaries, and appoints people to manage and distribute the assets. [...]
A trust is a tool used to hold, manage, and distribute property on behalf of a beneficiary, according to terms and rules set out in the trust. There are generally three roles in a trust: the grantor, who establishes the trust and transfers property into it; the trustee, who oversees the affairs of the trust; [...]
A will is a document that spells out, among other things, how a person’s property should be distributed upon his or her death, and who should be in charge of making these distributions. A guardian for minor children can also be appointed in a will.