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The Advantages of Revocable Trusts

When considering the employment of trusts in an estate plan, strategies are often selected because of the tax savings or tax efficiencies that can be garnered. Revocable trusts are a glaring exception to this rule. There are no tax savings to be gained by creating and funding a revocable trust, nor any asset protections provided to its settlor. Rather, this type of trust is used to provide substantial, non-tax benefits to the settlor including continuity, flexibility, and privacy. REVOCABLE TRUST STRUCTURE A revocable trust is created by an individual (settlor) to hold property during their lifetime. Typically, the trust will provide that the trust property be managed for the settlor’s benefit. In many cases, the settlor will also serve as a trustee or co-trustee of the revocable trust during their…

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