Menu
Every trust has four requisite elements. The first element is the trust maker, commonly referred to as the “Grantor” or “Settlor.” The second element is the person who manages the trust assets and performs the functions of the trust, commonly referred to as the “Trustee.” The third element is the person(s) that will benefit for the existence or operation of the trust, commonly called a “beneficiary” or “beneficiaries.” The fourth element consists of the assets inside the trust, which are referred to as the trust “corpus” or “residue.”
A Revocable Living Trust is one that can be changed, added to, or revoked during the Grantor’s lifetime. A living trust is a trust that takes effect during the Grantor’s lifetime. A revocable trust is typically a living trust. This trust acts like a will in that it can distribute assets to the beneficiaries after the Grantor dies. The revocable trust allows the beneficiaries to avoid the probate process. Probate is the legal process of a Court distributing the assets titled in the name of a person who has died to their heirs.
A Revocable Living Trust allows you to title assets in the name of the trust and decide how they will be distributed while you are still living.
Avoids Probate
A Revocable Living Trust can avoid probate, which is the court process of administering a person’s will or a person’s estate without a will after they have died. Probate can be time-consuming and take much longer to settle than the administration of a trust. Probate has very little flexibility because the process is written in law. The fees and costs from probate can be expensive and revocable living trusts can be relatively inexpensive to settle.
Privacy
During the probate process, some people are often shocked to learn that their loved ones’ wills and other private financial and business information become a matter of public record in the probate process. Unlike probate, there is no court file for strangers to review when you have a trust. The trust is private and only reviewed by those involved.
Flexibility
The Grantor can be flexible in terms of the treatment of assets during the Grantor’s lifetime, the distribution to the beneficiaries, and the control over the assets by the Trustee. You should consult with an experienced estate planning attorney who has experience with drafting trust documents to ensure the terms of your trust match the flexibility and control you desire.
At Larkin Law, we can help you craft a trust that avoids probate and maximizes privacy and flexibility. To learn more about Revocable Living Trusts and other estate planning vehicles, click here to schedule a consultation online now.
Designed and Developed by RTL Digital Media | Larkin Law ©2022