What Kind of Trust Does Suze Orman Recommend?

Suze Orman, the renowned financial expert, strongly advocates for the use of revocable living trusts as a crucial tool for protecting individuals and their families.

What is a Revocable Living Trust?

A revocable living trust is a legal document that allows you to designate how your assets will be managed and distributed during your lifetime and after your death. It offers numerous advantages over traditional estate planning methods like wills.

Why Does Suze Orman Recommend Revocable Living Trusts?

Suze Orman emphasizes the importance of revocable living trusts for several compelling reasons:

• Protection During Incapacity: If you become unable to manage your affairs due to illness or disability, your designated trustee will step in to handle your finances and ensure your well-being.
• Avoidance of Probate: Unlike wills, which require probate court approval, revocable living trusts bypass this lengthy and expensive process, ensuring a smoother and more efficient distribution of your assets.
• Privacy: The details of your trust remain private, unlike wills, which become public record after your passing.
• Flexibility: You retain complete control over your assets within the trust and can modify its terms or remove assets as needed.
• Protection for Beneficiaries: Your trust ensures that your assets are distributed according to your wishes and provides support for your beneficiaries, especially minor children, during challenging times.

Benefits of Revocable Living Trusts:

• Protection from Incapacity: Your designated trustee manages your affairs if you become incapacitated, ensuring your financial well-being.
• Avoidance of Probate: Bypass the lengthy and expensive probate process, allowing for a smoother and more efficient distribution of your assets.
• Privacy: Maintain the privacy of your estate plan, unlike wills, which become public record.
• Flexibility: Retain control over your assets and modify the trust terms or remove assets as needed.
• Protection for Beneficiaries: Ensure your assets are distributed according to your wishes and provide support for your beneficiaries, especially minor children.

Who Needs a Revocable Living Trust?

Suze Orman believes that everyone can benefit from a revocable living trust, regardless of age, net worth, or marital status. However, she highlights its particular importance for individuals in specific life stages:

• Getting Married: Protect assets acquired before marriage and ensure their separate ownership.
• Purchasing a Home: Maintain control over your property and designate its distribution after your death.
• Starting a Business: Ensure business continuity and financial support for your family in case of incapacity.
• Having a Baby: Provide immediate financial support and manage asset distribution for minor children.

Revocable vs. Irrevocable Trusts:

While revocable living trusts offer flexibility and control, irrevocable trusts relinquish ownership of assets, removing them from your taxable estate and protecting them from creditors. However, irrevocable trusts are more complex and require careful consideration.

Suze Orman strongly recommends revocable living trusts as a valuable tool for protecting individuals and their families. These trusts offer numerous benefits, including protection during incapacity, avoidance of probate, privacy, flexibility, and support for beneficiaries. If you’re looking for a comprehensive estate planning solution, consider exploring the advantages of a revocable living trust.