This video explains the optimal way to name a revocable living trust. Paul Rabalais, an estate planning attorney, discusses why including the word "revocable" in the trust's title can create complications, especially concerning long-term care and Medicaid eligibility, and potential lawsuits. He advocates for omitting "revocable" from the title while maintaining the trust's revocable nature within its legal document.
Avoiding "Revocable" in the Title: Including "revocable" in the trust's name can complicate future modifications, particularly if needing to restructure the trust for Medicaid long-term care benefits. This requires retitling assets, a cumbersome and expensive process.
Flexibility for Future Needs: Omitting "revocable" from the title allows for easier restructuring of the trust later without retitling assets. This is particularly helpful if long-term care or legal protection becomes necessary.
Protecting Assets from Creditors: A trust title with "revocable" may make assets more accessible to creditors in lawsuits. Removing "revocable" from the title might offer better protection.
Middle-Class Impact: The advice to remove "revocable" from the trust title is most relevant for the middle class, who may need Medicaid assistance for long-term care and whose assets are more vulnerable to creditors. Wealthier individuals may have less concern regarding these issues.
Restating the Trust: The speaker suggests restating the terms of the trust in the future rather than changing the title, to adapt to changing needs without unnecessary complications.
