Revocable Living Trust Planning

A revocable living trust sometimes simply called a living trust is a legal entity created to hold ownership of an individual s assets.

Revocable living trust planning. A major distinction between them is whether they are revocable or irrevocable. Of course the trust should provide for successor trustees at the death of the. Revocable trusts commonly called living trusts are an effective estate planning tool for avoiding the costs and hassles of probate preserving privacy and preparing your estate for ease of. Also known as a living trust a revocable trust can help assets pass outside of probate yet allows you to retain control of the assets during your the grantor s lifetime.

A revocable trust is a part of estate planning that manages and protects the assets of the grantor as the owner ages. Revocable living trusts are living because you make them during your lifetime. But unlike a will a living trust can avoid probate at death control all of your assets and prevent the court from controlling your assets if you become incapacitated. When the grantor of a revocable trust dies the trust lives on indefinitely to carry out the grantor s wishes.

Much has been written regarding the use of living trusts also known as a revocable trust inter vivos trust or loving trust as a solution for a wide variety of problems associated with estate planning that wills cannot address. Motley fool returns stock advisor s p 500. A revocable living trust can be a useful estate planning tool so take the time to investigate whether it pays to set one up. The trust can be amended or revoked as the grantor desires and is included in.

What is a living trust. A revocable living trust is a popular estate planning tool that you can use to determine who will get your property when you die. It is flexible and can be dissolved at any time should your. The type of assets you own and what must be done to get them funded into the trust should be carefully considered before you decide to use this estate planning tool.

The person who forms the trust is called the grantor or the trustmaker and they also serve as the trustee of this type of trust in most cases controlling and managing the assets they ve placed there. Most living trusts are revocable because you can change them as your circumstances or wishes change. A living trust is a legal document that just like a will contains your instructions for what you want to happen to your assets when you die.