In today's video we discuss three of the top 6 myths about revocable living trusts. Myths in this Part I of a two part series include:
Myth 1: People Cannot Challenge a Revocable Living Trust
Busted: Yes, they certainly can. There are procedural differences and different notice requirements, but any basis that a will can be challenged is pretty much a basis that a revocable living trust can be challenged.
Myth 2: Revocable Living Trusts Save on Income Taxes
Busted: Revocable living trusts are a legal fiction where in reality, you still own your property. There is no income tax saving from using a revocable living trust.
Myth 3: Revocable Living Trusts Protect Assets From Medicaid
Busted: Only irrevocable living trusts can protect assets from Medicaid or Medical Assistance. Revocable living trusts, as the name suggests, are not irrevocable.