Revocable Living Trust

A revocable trust, also known as a living trust, is a legal arrangement in which the trustor (the person who creates the trust) transfers ownership of assets to a trust, which is managed by a trustee for the benefit of the trust's beneficiaries. The key characteristic of a revocable trust is that the trustor retains the right to alter, amend, or revoke the trust during their lifetime. Here are the main features and benefits of a revocable trust:

Key Features:

1. Flexibility:

   • The trustor can make changes or terminate the trust at any time, as long as they are mentally competent.

2. Control:

   • The trustor can act as the trustee and manage the assets within the trust. Alternatively, they can appoint a trustee to manage the assets according to their instructions.

3. Avoids Probate:

   • Assets in a revocable trust do not go through the probate process upon the trustor's death, which can save time and legal fees and keep the trust contents private.

4. Continuity:

   • In the event the trustor becomes incapacitated, a successor trustee can take over management of the trust assets without court intervention.

Benefits:

1. Privacy:

   • Unlike a will, which becomes public record after death, a revocable trust remains private.

2. Efficiency:

   • Avoiding probate can expedite the distribution of assets to beneficiaries.

3. Incapacity Planning:

   • The trust can include provisions for the management of the trustor's affairs if they become incapacitated.