Revocable Trust Myths
Throughout my years practicing as an estate planning attorney, I’ve run across some common misconceptions that people have about Revocable Living Trusts. Learn what these common myths are and if you’ve fallen for any of them. Myth #1 – A Revocable Trust Reduces Estate Taxes True or false: A Revocable Living Trust will reduce your estate tax bill. FALSE – A Revocable Living Trust does absolutely nothing to reduce your estate tax bill. It’s main purposes are to protect your privacy, plan for disability, and avoid probate. Period. With that said, married couples can reduce their estate taxes by incorporating AB Trusts into their Revocable Living Trusts, but AB Trusts can also be incorporated into Last Will and Testaments. The difference is, a Revocable Trust will protect the couple’s privacy and allow them to plan for disability and avoid probate. A Last Will and Testament can’t and doesn’t do any of these things.
