There are a variety of estate planning tools available to families that will allow them to protect their assets, use these assets to provide for themselves and their loved ones, and determine how matters should be handled after a person’s death. While most people are familiar with wills, they may not be fully aware of the role that trusts can play in an estate plan. Revocable living trusts can be especially beneficial, and understanding how these trusts may be used will ensure that a family will be fully prepared for the future.
What Is a Revocable Living Trust?
Trusts are legal instruments that will allow a person’s assets to be managed by a trustee, who will follow specific instructions for how assets should be distributed to a person’s beneficiaries. When a trust is created, ownership of assets will be transferred to the trust itself. This can ensure that certain assets will be protected, and it will also make sure these assets will be used correctly. If a trust is revocable, the person who created the trust can update its terms at any time.
With a revocable living trust, the trustmaker will usually be able to maintain control of their assets during their lifetime. The trustmaker may serve as the trustee, and a successor trustee will also be named who will assume control of the trust after the trustmaker’s death or if they become incapacitated. A trustmaker can make decisions about how the assets in a trust will be distributed to their family members or other beneficiaries after their death. They can also name themselves as a beneficiary and use the trust’s assets to provide for their own needs throughout their lifetime.
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