What Is a Revocable Living Trust
A revocable living trust is a legal document that places your assets into a trust during your lifetime. As the grantor, you maintain full control and can modify or revoke the trust at any time.
Benefits of a Living Trust
The primary benefits include avoiding probate, maintaining privacy, providing for incapacity management, and allowing for more detailed distribution instructions than a simple will.
Funding Your Trust
A trust is only effective for assets that have been transferred into it. This process, called "funding," involves retitling assets in the name of the trust, including real estate, bank accounts, and investment accounts.
Common Misconceptions
Many people believe trusts are only for the wealthy. In reality, anyone with property, minor children, or specific distribution wishes can benefit from a trust. The cost of establishing a trust is often offset by the savings in probate costs.