A Revocable Trust can be used to hold legal title to your assets and provide a mechanism to manage them. You (and/or your partner) are the trustee(s) and beneficiaries of your trust during your lifetime. You also designate successor trustees to carry out your instructions as you have provided in case of death or incapacity. Unlike a Will, a Trust can be administered immediately after death. Your Revocable Trust is “revocable” which allows you to make changes and even to terminate it during your lifetime. One of the great benefits of a properly funded Revocable Trust is the fact that it will avoid probate and minimize the expenses and delays associated with the settlement of your estate.
It is a written legal document that creates an entity to which an individual transfers ownership of their assets. A trust ownership is a form of ownership where the legal title to assets is held by the trustee of the trust for the beneficial enjoyment or use by the beneficiary or beneficiaries of the trust. A revocable living trust is a trust created during the trustmaker’s life, and the trustmaker retains the right to amend or revoke the trust while alive. While the trust maker is alive and competent, they can serve as the trustee and are the primary beneficiary of the trust. A living trust contains the maker’s instructions for what is to happen to the trust property when they die. A living trust is a will substitute. Unlike a will, a living trust also contains instructions for what is to happen if the maker becomes disabled or incapacitated. However, the trustmaker does not lose control of the assets once they are transferred into the trust if the trustmaker is named as the trustee.
Revocable trusts are where individuals can deposit funds into the trust and later have the option to withdraw them. Individuals opt for having their funds managed by a designated party in the event of incapacitation, and they also have the ability to dictate the allocation of these funds upon their death.
This involves an agreement between the Trust-makers, Trustees (or Trust Managers), and Trust Beneficiaries. For example, a couple might designate themselves in all three positions, control the assets within the trust, and derive benefits from them. Alternate managers can step in if the couple becomes incapacitated or dies. The trust contains provisions that determine how assets are managed and distributed to heirs after the trustmaker’s death. If carefully structured, these trusts can also reduce or eliminate estate taxes without the need for legal proceedings.
A Revocable Living Trust can be used to hold legal title to your assets and provide a mechanism to manage them. You (and your partner) are the trustee(s) and beneficiaries of your trust during your lifetime. You also designate successor trustees to carry out your instructions as you have provided in case of death or incapacity. Unlike a Will, a Trust usually becomes effective immediately after incapacity or death. Your Revocable Living Trust is “revocable” which allows you to make changes and even to terminate it. One of the great benefits of a properly funded Revocable Living Trust is the fact that it will avoid probate and minimize the expenses and delays associated with the settlement of your estate.
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