On January 1, 2011, the federal estate tax rate is scheduled to return at a high of 55 percent, as the personal exemption is decreasing to merely $1 million, MyFoxHouston.com reports.
As a result of these changes, it can be crucial for people to begin estate planning as soon as possible, to ensure that assets are transferred in an orderly fashion down the road, financial consultant Rich Rosso tells the news provider.
During this estate planning process, which can certainly have its difficulties, Rosso suggests that a revocable living trust has a number of clear advantages, as it allows for "a level of flexibility and control that a will alone cannot."
Rosso adds that the assets in a living trust are also not subject to probate, will directly go to one's designated heirs and can be difficult to challenge in court. Likewise, the financial consultant tells the news source that people with a living trust "will maintain the same access and control over his or her assets as he or she did before putting them in the trust."