What is a Revocable Living Trust?
A RLT is a will substitute, and can be a very effective means of passing your estate to your beneficiaries. To do so, you transfer title to your assets into the trust while you are alive. You serve as trustee of your own assets. Then, when you die, they pass directly to your beneficiaries without a probate.
A revocable living trust is also commonly referred to as a revocable inter vivos trust, a grantor trust or, simply, a living trust. A 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. 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.”) In many cases, it is appropriate for you to be the initial trustee of your living trust, until management assistance is anticipated or required, at which point your trust should designate an individual or bank or trust company to act in your place. The terms of the trust become irrevocable upon the trustor’s death.
A revocable living trust is also commonly referred to as a revocable inter vivos trust, a grantor trust or, simply, a living trust. A 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. 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.”) In many cases, it is appropriate for you to be the initial trustee of your living trust, until management assistance is anticipated or required, at which point your trust should designate an individual or bank or trust company to act in your place. The terms of the trust become irrevocable upon the trustor’s death. Because the trust contains provisions which provide for the distribution of your assets on and after your death, the trust acts as a substitute for your will, and eliminates the need
A. The Revocable Living Trust is an alternative to a will. You transfer property from yourself as trustor, to yourself as trustee. No one else is involved with your trust while you are living. You can buy, sell, trade, invest, and reinvest property without the consent of any other party. In your trust document you name who will be successor trustee and successor beneficiaries. Upon your death, the successor trustees distribute the estate to the successor beneficiaries exactly as you have directed in your trust. This can be accomplished through specific gifts, percentages, or a combination of both.
