Does anybody know of any of the negative aspects (pitfalls) of a revocable trust? In other words, would there be any way that the trust may not be valid or someone could contest it like a will?
I live in Nevada.
Thank you for any info you can give me.
2007-02-06 15:54:46 · 2 answers · asked by Kaye 1 in Business & Finance ➔ Personal Finance
The negatives I know of are:
A poorly drafted document, usually off the shelf not drafted for the grantor's's specific circumstances.
The claims period against an estate is usually six months after the probate notice is published. Some states have a three year claims period against the assets in a revocable trust.
Some documents fail to gift the substitute trustee the right to gift assets after the grantor becomes incapacitated.
The transfer of personal property is not always attached.
Because of having to re-title assets in the name of the trust the grantor loses asset protection features of other asset titling methods.
2007-02-07 00:30:04 · answer #1 · answered by waggy_33 6 · 1⤊ 0⤋
It can be contested but the odds of success are much less, especially if you have funded it before your death. I guess one negative could be a dramatic change in finances right before your death that would cause the needs of your heir(s) to not be met because it becomes irrevocable at death. The terms of the trust are required to be carried out.
2007-02-07 08:17:03 · answer #2 · answered by Father Knows Best 3 · 0⤊ 0⤋