The revocable trust is a more comprehensive tool for estate planning. With the revocable trust, as with a will, an individual can make arrangements for the transfer on death of all of his or her assets in one document while preserving the right to control the assets and amend the revocable trust during his or her life. The revocable trust, like a will, is also a useful tool for tax planning and apportionment. Unlike a will, the revocable trust does not require a probate proceeding on death. But revocable trusts have limitations. The legal fees to draft a revocable trust can be several thousand dollars, depending on the complexity of the estate. In addition, the settlor of the trust must title all of his or her assets in his or her name “as trustee under the . . . Revocable Trust” so that the assets will be distributed through the trust. If the settlor fails to change the title for a significant asset, then a probate proceeding will be needed to transfer title to the asset. These limitations of the revocable trust are especially problematic for individuals who have small estates in which the major asset is a family home or farm. If the primary asset in the estate is a house, the property owner may not want to incur the cost of having a revocable trust prepared.

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