A living revocable trust is a popular estate planning tool, but it does have some drawbacks. One of the main disadvantages is that it does not provide asset protection from creditors. It also requires some administrative work to transfer all assets into the trust, and any assets that are not formally transferred will have to go through probate. Additionally, creating a living trust is not difficult or expensive, but it does require some paperwork and may be subject to transfer taxes in certain states.
Furthermore, switching assets to a revocable trust will not save income or estate taxes. The biggest advantage of a living trust is that it allows you to avoid probate court. However, this comes with the disadvantage of taking up to 18 months to liquidate the estate and distribute the assets to the beneficiaries. Additionally, creating a trust is usually more expensive than creating a will.