What is a revocable living trust and will I avoid probate if I put my assets in trust?
A revocable living trust is a written agreement that specifics how a person’s property is to be managed during his or her lifetime and also upon death. A trust is considered a “living” trust when it is established during the lifetime of the grantor (the person who creates the trust) and is classified as a “revocable” trust when the grantor has reserved the right to amend or revoke the trust during his or her lifetime. Property held in a revocable living trust at the time of the grantor’s death is not subject to probate administration. Any property not held by the trust, however, would be probated in the procedure described above. So, if the grantor sets up the trust but fails to follow through and work with his or her counsel or financial advisor to get the assets transferred to the trust, the grantor has missed out on one of the main advantages to establishing the trust.
