A revocable living trust is a legal document where you, as the grantor, place assets into a trust, with yourself as the initial trustee, and retain the right to change or revoke the trust during your lifetime, often used for estate planning to avoid probate and ensure asset management in case of incapacity.
- Created During Your Lifetime:
Unlike testamentary trusts (which are created in a will and take effect after death), living trusts are established while you are alive.
- Revocable:
You can modify, amend, or even dissolve the trust at any time as long as you are mentally competent and the trust is revocable.
- Asset Management:
You transfer assets (like real estate, bank accounts, investments) to the trust, and the trustee (who can be yourself initially) manages them according to the trust’s terms.
- Avoids Probate:
Assets held in the trust are typically not subject to probate court proceedings upon your death, streamlining the transfer of assets to beneficiaries.
- Incapacity Planning:
If you become incapacitated, the successor trustee (named in the trust document) can take over management of the assets, avoiding the need for a court-appointed conservator.
- Privacy:
Unlike a will, which is a public record, the terms of a trust are generally private.
- Beneficiaries:
The trust document specifies who will receive the assets after your death (the beneficiaries).
