What is a Revocable Living Trust?
A Revocable Living Trust is a legal document -“a paper person” which owns property. The property is owned and managed by the Trustee (you) who manage and control the property owned by the trust. The trust can be changed or revoked at anytime by the Trustee (you). 2. WHY SHOULD I SET UP A REVOCABLE LIVING TRUST? There are five basic reasons: 1) to avoid probate fees, 2) to avoid probate delays, 3) to leave more of your estate (property) to your heirs, 4) to avoid probate publicity, 5) to reduce Federal Estate Taxes and Capital Gain Taxes.
A. A revocable living trust can be created if you transfer some or all of your property to a revocable trust during your lifetime. Typically, you control the trust property in your capacity as trustee of the revocable living trust. A revocable living trust is created during the trust creator’s life and generally provides for the trust creator (and, if applicable, the trust creator’s spouse) to receive the trust income and use of the trust assets for life. On the death of the trust creators, the assets may be distributed to other named trust beneficiaries, such as the trust creator’s children. There are many other practical considerations when using a revocable living trust. A revocable living trust does not eliminate the need for a will because a will identifies who gets the assets that were not transferred to the trust during your lifetime. The will directs any assets not already in the trust to be transferred into the trust at your death. The trustee of the trust will manage and dist
A revocable living trust is a written agreement where you document your wishes and instructions on how your assets are to be managed if you become unable to manage your own financial affairs, and how your assets are to be distributed after you die. As conditions change in your life, or as changes in the laws create a need to modify your trust, then you change the instructions established in your revocable living trust. Assets within a trust will pass to beneficiaries outside of the probate process. As a revocable living trust it can be change, or revoked, during your lifetime. A revocable living trust is often called a living trust for short. When a living trust is set up, then the person creating the trust is commonly called a Trustmaker, Settlor, Grantor or Trustor. The person or entity responsible for managing the living trust is called a Trustee. The persons or entities that are to receive the benefits of the trust are called the beneficiaries. Normally, the person who sets up a li
A revocable living trust is a type of trust that takes effect during the testator’s life and can be changed or terminated at any time with the property returning to the testator. The testator also can retain control over the property in the trust by naming themselves as the trustee and naming a successor trustee to take over trust administration at the testator’s death. These trusts are often used as a means to avoid probate because the title of property is transferred to the trust and is not considered property of the testator at his or her death, thus making the property unavailable for probate. Copyright 2009 FindLaw, a Thomson Business DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.
A Revocable Living Trust is the most important and versatile Estate Planning document available under the law. It is created while you are alive and can be amended or revoked at any time. A Revocable Living Trust is an instrument used to direct assets from one person to another under the management of a third person. The Revocable Living Trust enables an individual to completely avoid Probate, its costs, delays, and publicity. A Revocable Living Trust begins the moment you (the settler) execute the declaration of Trust. The Trust becomes effective when it is funded properly, transfer of property into the Trust.
