Revocable Living Trusts
that includes other documents such as
powers of attorney. Some attorneys
perform estate planning work on a “at
fee” basis, while others charge hourly
rates. If cost is a concern, it is usually
a good idea to compare cost estimates
from two or more attorneys.
Can a revocable living trust be
changed?
The terms of a RLT can be changed
at any time, which is usually accom-
plished by amending the document or,
if the changes are substantial, by restat-
ing and amending the trust document
in its entirety. Moreover, a RLT is, as
the name states, revocable, and may be
cancelled in full at any time before the
trustor’s death.
I oen hear mention of “trusts.” How
does a revocable living trust compare
to other types of trusts?
There are many different types of
trusts, some of which are created dur-
ing the trustor’s lifetime and others that
are created only after death. Different
trusts have different purposes, such as
minimizing estate taxes or providing
for a disabled family member. In gen-
eral, the RLT’s purpose is to provide
for a relatively straightforward and
private process for transferring assets
after death.
Does a revocable living trust protect
assets from potential lawsuits and
creditors?
No; contrary to popular belief, the
transfer of assets to a RLT does not
provide meaningful protection from
potential lawsuits and creditors.
Are there tax reasons to have a revo-
cable living trust instead of a will?
No, there are no tax advantages to us-
ing a RLT instead of a will. The cre-
ation of a revocable living trust has no
effect on the trustor’s personal income
tax situation; all income and expenses
are reported on the trustor’s regular,
individual tax return. Also, the same
gift and estate tax planning can be ac-
complished with a RLT as with a will.
(In 2013, an individual’s estate is ex-
empt from Washington’s estate tax if
the net estate is less than $2 million,
and exempt from federal estate tax if
the net estate is less than $5.25 mil-
lion. These exemption amounts will
increase over time because, under
current law, both the state and federal
exemptions are indexed for ination.
In addition, and in general, estate tax
laws often change.)
What are the advantages of a revo-
cable living trust compared to a will?
RLTs offer some advantages, includ-
ing:
• Private transfer of assets to bene-
ciaries after death instead of pro-
bate, which creates a public record;
• May avoid (if properly created and
maintained) the requirements and
expenses of a probate;
• Designation of another person to
manage one’s assets during life is
easy, if desired.
What are the disadvantages of a revo-
cable living trust compared to a will?
There are also disadvantages to RLTs,
including:
• RLTs are not as common as wills in
Washington and their unfamiliar-
ity can complicate matters after the
trustor’s death;
• RLTs are usually more expensive
to establish than a will because of
the time involved in ensuring that
appropriate assets are transferred
to the trust;
• Administering a RLT without
a probate does not provide the
helpful and protective aspects of
probate, which include creditor
deadlines and a court venue for ad-
dressing disputes;
• Ongoing maintenance is required
to ensure that appropriate assets
are held in — and new assets are
acquired by — the RLT.
Why have I heard from friends or
relatives who live in other states that
a revocable living trust is superior to
a will?
Approaches to estate planning vary
signicantly from state to state. For
example, in some states only RLTs are
used. Moreover, the probate process
varies greatly among states in terms
of cost, benets, complexity and du-
ration. For Washington residents, the
decision about whether to establish a
RLT or a will is an individual one that
is best made in consultation with an
experienced estate planning attorney.
This pamphlet was prepared as a public ser-
vice by the Washington State Bar Associa-
tion. It contains general information and is not
intended to apply to any specic situation.
If you need legal advice or have questions
about the application of the law in a particular
matter, you should consult a lawyer.
Washington State Bar Association
1325 4th Ave., Ste. 600
Seattle, WA 98101-2539
800-945-WSBA • 206-443-WSBA
www.wsba.org
©2014 by Washington State Bar Association