Trustee Requirement

• Every trust requires a trustee. In circumstances where a married couple creates dual revocable trusts, the trustee is typically a bank or a financial institution. Having a bank or financial institution administer dual trusts costs more than other estate planning tools. Additionally, modification of dual revocable trusts can be a complex and time-consuming endeavor.
  
  

Financial Cost

• Dual revocable trusts are more costly to create and maintain than less complex estate planning tools. These trusts are typically created by spouses with significant assets. Thus, the cost may not outweigh the benefits where substantial assets exist. However, for those with relatively small, simple estates, the cost of setting up these trusts might not be worth it.
  
  

Asset Control

• Where two spouses create dual revocable trusts, and one spouse dies, the trust funds in the deceased spouse's trust are protected from estate taxes prior to distribution. However, when trust funds from the deceased spouse's trust are disbursed to the surviving spouse, these funds may be open to an estate tax levy. Additionally, beneficiaries to a trust are not in control of the trust; the trustee has control as stipulated in the trust creation document. As such, beneficiaries must assert their rights if the trustee acts against the terms of the trust.
  
  

Additional Disadvantages

• Typically, couples who consider dual revocable trusts are attracted to the privacy these trusts provide. Often, trusts are created as a means to avoid probate, the details of which are a matter of public record. Although probate is indeed public, probate is often avoided when the first spouse dies, as most couples hold marital property jointly. As such, the cost of creating and administering two trusts may not be worth it if privacy is the main concern.