What does a revocable trust accomplish?
A trust is a written agreement between the individual creating the trust and the person or institution named to manage the assets held in the trust (the “trustee.”). A revocable living trust may be amended or revoked by the person creating it (commonly known as a “trustor,” “grantor,” or “settlor”) at any time during the trustor’s lifetime, as long as the trustor is competent. The terms of the trust become irrevocable upon the grantor’s death. Because the trust contains provisions which provide for the distribution of your assets on and after your death, a properly funded and maintained trust eliminates the need for the probate with respect to those assets which were held in your living trust at your death. Certain types of trusts may reduce your federal estate tax liability upon your death, or eliminate them altogether. Your individual financial situation must be assessed in order to determine the best plan for you.
