What is a Revocable Living Trust?
A Revocable Living Trust is a legal document that holds title to your assets. Your assets are then titled in the name of the trust rather than in your name, even though you still remain the owner of all the assets in the trust. The trust sets forth all the terms regarding your property and what will happen to your assets upon your incapacity and death. Because your trust is revocable, you can move assets in and out of the trust, and revoke, re-state and amend your trust at any time during your lifetime. After your death, your trust becomes irrevocable. In the case of a married couple, one-half of the trust becomes irrevocable at the death of the first spouse to die, and all of it is irrevocable at the death of the surviving spouse.
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 creators creating it at any time during the trustors lifetime, as long as the trustor is competent. A trust is a written agreement between the individual and the trust and 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 due to (incapacity or death), at which point your trust should transfer to an individual, bank, or trust company to act in your place when the terms of the trust become irrevocable upon the trustors death. Because the trust contains provisions which provide for the distribution of your assets after your death, the trust acts as a substitute for your will, and eliminates the need for the probate of your
A trust is a contract whereby one person transfers property to another person for the benefit of a third person. For example, “A” transfers property to “B” to manage for the benefit of “C”. If the creator of this arrangement sets it up during his/her lifetime, it is called a “Living Trust”. If the creator retains the rights to dissolve the trust, it is a “Revocable” Living Trust. Assets transferred to a living trust avoid probate. This arrangement is the most widely advertised advantage of a living trust. The revocable living trust also avoids publicity. Estates which pass through probate are a public record. Not only is the Will available to anybody who wants to see it, but also an inventory and appraisal of the decedent’s assets. One easily can avoid this publicity and achieve privacy by transferring assets into the living trust. Property in the trust will be kept private, both as to its nature, and as to who receives it. If an individual’s assets are placed into a trust and an indiv
Much has been written recently regarding the use of “living trusts” (also known as a “revocable trust” or “inter vivos trust”) as a solution for a wide variety of problems associated with estate planning through wills. Some attorneys regularly recommend the use of such trusts, while others believe that their value has been somewhat overstated. The choice of a living trust should be made after consideration of a number of factors. This brief summary is intended to provide a framework of basic knowledge regarding “living trusts” in general, in order that you might determine whether you should pursue a discussion of this technique further with your attorney licensed to practice in the state where your estate would be administered. The term “living trust” is generally used to describe a trust (a) which you can create during your lifetime, and (b) which you can revoke or amend whenever you wish to do so. You can also create an “irrevocable” living trust, but that is permanent and unchangeab
