Revocable Living Trust
What is a Revocable Living Trust
Revocable Living Trust is a key component of any estate plan. There are two terms that you often come across when dealing with Trusts: Settlor and Trustee. A Person creating a Revocable Trust is called a Settlor (or Settlors if multiple persons created the Trust like a married couple). The person administering the trust is called Trustee. Generally, during the Settlor’s lifetime, Settlor(s) also acts as a Trustee. The Settlor transfers the assets that are in individual or joint names to the Trust. After the death of the Settlor or both Settlors in cases of trust created for married persons, Successor Trustee nominated in the Trust will take charge and start administering the Trust according to the instructions laid out by the Settlor, including things like paying taxes, distributing the estate etc. In case of married persons, if one spouse passes away, generally the other spouse can act as a trustee, depending on the provisions of the trust.
What are the primary reasons for creating a Revocable Living Trust
The two primary reasons for creating a Revocable Living Trust are
Are there other advantages with Revocable Living Trust
Yes. Since the Trust doesn’t go through the probate process, it can provide greater Privacy to all the involved persons. Furthermore, avoidance of the probate results in reduced costs and delays. Finally, the Trust can conceal the ownership of the trust assets.
Can I amend the Revocable Living Trust once it is created
Depending on the provision of the Revocable Living Trust, The trust can be amended or revoked during the Settlors lifetime. It is a flexible estate planning instrument and is very popular among the families trying to create their first estate plan. The amendments generally include, updating the Beneficiaries or Children Information, adding or removing Trustees, updating how the assets shall be distributed etc.
Revocable Living Trust is a key component of any estate plan. There are two terms that you often come across when dealing with Trusts: Settlor and Trustee. A Person creating a Revocable Trust is called a Settlor (or Settlors if multiple persons created the Trust like a married couple). The person administering the trust is called Trustee. Generally, during the Settlor’s lifetime, Settlor(s) also acts as a Trustee. The Settlor transfers the assets that are in individual or joint names to the Trust. After the death of the Settlor or both Settlors in cases of trust created for married persons, Successor Trustee nominated in the Trust will take charge and start administering the Trust according to the instructions laid out by the Settlor, including things like paying taxes, distributing the estate etc. In case of married persons, if one spouse passes away, generally the other spouse can act as a trustee, depending on the provisions of the trust.
What are the primary reasons for creating a Revocable Living Trust
The two primary reasons for creating a Revocable Living Trust are
- Avoiding the probate. On the death of the Settlor(s), the assets of the Trust doesn’t go through the probate process. The beneficiaries of the trust, generally the Children of the Settlor(s), can have quicker access to the trust assets in a less expensive way.
- Management of the property when a Settlor gets incapacitated. When a Settlor gets incapacitated, the other Trustees or Successor Trustee nominated in the trust can start administering the Trust.
Are there other advantages with Revocable Living Trust
Yes. Since the Trust doesn’t go through the probate process, it can provide greater Privacy to all the involved persons. Furthermore, avoidance of the probate results in reduced costs and delays. Finally, the Trust can conceal the ownership of the trust assets.
Can I amend the Revocable Living Trust once it is created
Depending on the provision of the Revocable Living Trust, The trust can be amended or revoked during the Settlors lifetime. It is a flexible estate planning instrument and is very popular among the families trying to create their first estate plan. The amendments generally include, updating the Beneficiaries or Children Information, adding or removing Trustees, updating how the assets shall be distributed etc.
