The revocable trust established as a part of your estate plan can serve as a very useful asset management vehicle during your lifetime. The benefits of funding a revocable trust during lifetime include:
(a) To avoid probate and many of the attendant delays, costs and administrative hurdles which are often associated with probate
(b) To avoid public disclosure of the extent of the Donor’s assets and his dispositive plan by avoiding the filing requirements of the probate registry
(c) To secure professional investment management for the assets placed in the trust
(d) To provide for continuity of management of the assets and access to the assets in the event of the Donor’s incapacity or incompetence
A funded revocable trust is most useful for the management of investment assets such as marketable securities and the like. Special considerations apply to the use of a revocable trust to hold other assets such as closely held stock, partnership interests, and real estate.
The following discussion summarizes how to fund your trust and explains the tax consequences of doing so.