My financial advisor and another attorney I met with recommended I utilize a revocable living trust as part of my estate plan. What is a revocable living trust and why did the attorney recommend it?
A revocable living trust (RLT) is simply a tool used for the lifetime management of your assets as well as disposition of such assets upon your death. A RLT does not replace the need for a will, but instead is used in conjunction with a simple form of will called a “pourover will.” A pourover will is basically a will that distributes all assets passing under it to your RLT. For many purposes, a RLT is a legal entity separate from its settlor (or grantor, trust maker, trustor – simply the person who establishes the RLT). A RLT may enable its settlor to avoid probate because the property held in the RLT is not subject to probate upon the settlor’s death. Additionally, a RLT continues pursuant to it terms after the death of its settlor and provides for continued management of the RLT’s assets in the event of the settlor’s incapacity. A RLT does not save taxes or provide creditor protection against a lawsuit judgment or bankruptcy action for the settlor. In order to determine whether the R
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