How Does a Revocable Living Trust Work?

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How Does a Revocable Living Trust Work?

When your Estate Plan includes a Revocable Living Trust (also called an “Inter-vivos” Trust), it includes a powerful tool that can help your estate avoid the cost, hassle and publicity that come with probate court proceedings, and that can help ensure your wishes for the management and distribution of your assets are honored both during your lifetime, and after your death.

How does a revocable living trust work?

There are two main steps involved in creating a Revocable Living Trust: establishing a Trust agreement to govern the Trust, and funding the Trust by putting assets into it. Your Trust agreement will identify a trustee charged with managing Trust assets and carrying out your wishes. For most Revocable Living Trusts, the person creating the Trust (the “Grantor” or “Settlor”) serves as the initial Trustee, but it is important to provide for at least one successor Trustee who will serve if you become incapacitated, and after your death.

The Trustee has control over Trust assets in his or her capacity as a fiduciary. For assets inside of the Trust, the Trustee generally has broad authority to access, sell, exchange, convey, and take other actions as needed in furtherance of your goals and wishes. For example, if you transfer your bank accounts into the Trust and are serving as the initial Trustee yourself, you will still have complete control over your accounts. However, you are accessing and using account assets as the Trustee of your Trust, rather than in an individual capacity. If you are incapacitated and when you die, your named successor Trustee has that authority.

Revocable Living Trusts take a little more work to establish and fund now, but they can make the process of winding down your estate seamless, straightforward and cost-effective when you die.

Secure a financially sound future for you and your loved ones by partnering with us. At our firm you can be sure that your satisfaction will always be our first priority. We will be your trusted advisor at every step of the process. Our services are available at competitive prices and do not involve any hidden costs.  We are here to guide you through the difficult decisions that will protect your family after your passing. Contact us today to get started!