How is a revocable living trust different from other types of trusts?
Top One feature that distinguishes a living trust from other trusts used in estate planning is that in a living trust individuals usually play more than one role in the trust agreement. Normally, a client who forms a living trust will designate himself or herself to act as the trustee and also as the beneficiary during the client’s lifetime. The client, therefore, is filling all three primary roles in the trust agreement. This distinguishes the living trust from most other trusts generally used in estate planning. In a living trust, the grantor typically receives all income earned by the trust assets during the grantor’s lifetime. Upon the grantor’s death, trust property is distributed to successor beneficiaries named in the trust agreement.
