Three Main Reasons to Have a Revocable Trust
*Why More Families Are Choosing This Flexible Estate Planning Tool*
When it comes to planning for the future, many people believe a simple will is enough. While a will is a crucial component of any estate plan, a revocable living trust can offer additional benefits—especially for those looking for flexibility, privacy, and efficiency.
Here are three key reasons why more individuals and families are turning to revocable trusts:
1. Avoiding Probate
One of the most common reasons to create a revocable trust is to avoid probate, the court-supervised process of distributing a person’s estate after death. Probate can be:
- Time-consuming, often taking months or even years to resolve
- Expensive, with court fees and legal costs that reduce the value of the estate
- Public, meaning your personal and financial matters become part of the public record
By placing your assets into a revocable trust, you ensure they can be transferred directly to your chosen beneficiaries without probate, saving time and money and preserving privacy.
2. Planning for Incapacity
A revocable trust doesn’t just manage what happens after death—it also plays a key role in managing your affairs if you become mentally or physically incapacitated.
If you’re unable to handle your own finances or make decisions, the successor trustee you’ve named can step in immediately to manage your assets according to your instructions—without the need for court intervention or a guardianship proceeding.
This provides peace of mind that your financial life will stay on track even if you’re not able to manage it yourself.
3. Flexible and Private Asset Management
A revocable trust is exactly what it sounds like—revocable. That means you can:
- Add or remove assets from the trust
- Change beneficiaries
- Replace your trustee
- Or revoke the entire trust if your plans or circumstances change
It’s a flexible tool that evolves with your life. And unlike a will, the trust doesn’t become part of the public record, ensuring your estate and distribution plans stay private.
Real Case Example: Marshall v. Marshall, 547 U.S. 293 (2006)
A famous legal dispute highlighting the importance of having a revocable trust is Marshall v. Marshall, which involved the estate of J. Howard Marshall, a wealthy oil magnate, and his widow, Anna Nicole Smith.
In this high-profile case, Marshall had created a revocable living trust that detailed the distribution of his assets—specifically excluding Anna Nicole Smith from receiving any inheritance. Because the assets were held in the trust, they were not subject to probate, and his intentions were largely upheld despite years of legal challenges.
Had those assets been passed solely through a will, the outcome may have been different—and the estate could have faced even more costly, public, and prolonged litigation.
Final Thoughts
A revocable trust isn’t just for the wealthy—it’s a smart, flexible solution for anyone who wants more control over how their assets are managed and passed on. When used alongside a well-crafted will, powers of attorney, and healthcare directives, it forms the cornerstone of a comprehensive estate plan.
If you're unsure whether a revocable trust is right for you, a qualified estate planning attorney can help tailor a plan that fits your goals and family needs.