Define: Revocable Living Trust

A revocable living trust is a legal arrangement where a person (the grantor) transfers their assets into a trust during their lifetime, and retains the ability to change or revoke the trust at any time.

Some benefits of a revocable living trust include avoiding probate, maintaining privacy, and providing for the management of assets in the event of incapacity.

A revocable living trust allows for the management of assets during the grantor’s lifetime and after their death, while a will only takes effect after the grantor’s death.

Yes, the grantor typically serves as the initial trustee of their revocable living trust, maintaining control over the trust assets.

Most types of assets, including real estate, bank accounts, investments, and personal property, can be placed into a revocable living trust.

Yes, the grantor has the ability to make changes to the trust, including adding or removing assets, changing beneficiaries, and amending the terms of the trust.

It is generally recommended to have a pour-over will in addition to a revocable living trust, to ensure that any assets not transferred into the trust during the grantor’s lifetime are still distributed according to their wishes.

After the grantor’s death, the successor trustee (typically named by the grantor) takes over the management of the trust and distributes the assets according to the terms of the trust.

While it is possible for a revocable living trust to be contested, the ability to contest a trust is generally more limited than contesting a will.

Creating a revocable living trust typically involves working with an attorney to draft the trust document, transferring assets into the trust, and ensuring that the trust is properly funded and maintained.