Free Revocable Living Trust

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Revocable Living Trust

Gifts


Gifts



Frequently Asked Questions
Who can I give a gift to?Gifts can be made to people, charities, and business entities, such as a partnership or corporation. If you give a gift to a person with a disability, make sure you understand the impact the gift may have on their eligibility for Supplemental Security Income and Medicaid. Cash gifts may disqualify them from these benefits.Why can I only gift items in the trust?Your Living Trust can only control the assets you put into the trust. When will the recipient receive their gift?Any gifts you list on this page will be given to the gift recipients after you pass away.


Your Revocable Living Trust

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The __________ Revocable Living Trust

I, __________, presently of __________, Virginia, (the "Grantor") declare and make this revocable living trust (the "Living Trust"). This Living Trust will be known as The __________ Revocable Living Trust.

  1. Trust Purpose
  2. This Living Trust is created for the benefit of the Beneficiaries to ensure they are well provided for after the death of the Grantor, however during the lifetime of the Grantor, the interests of the Grantor will be considered primary and superior to the interests of the Beneficiaries. With this purpose, the primary asset management goal for this Living Trust will be the protection of the value of the Property. The secondary asset management goal for this Living Trust is to generate income and growth at a reasonable risk.
  3. Trustee
  4. During the lifetime of the Grantor, and while the Grantor is not Incapacitated, the Grantor will serve as the primary trustee (the "Primary Trustee") and the Acting Trustee of this Living Trust.
  5. Upon the death of or during the Incapacity of the Grantor, then __________ of __________, Virginia (the "Successor Trustee") will serve as the Acting Trustee of this Living Trust. If the Grantor should recover such that they are no longer considered Incapacitated then the Grantor will resume their control of the management of this Living Trust.
  6. Beneficiaries
  7. Upon the death of the Grantor, the following individual(s) will comprise the beneficiaries (the "Beneficiaries") of this Living Trust:
    1. The residuary beneficiary, __________ of __________, Virginia;
    2. Any heir or issue of those beneficiaries that is entitled to a benefit under this Living Trust in the place of any then deceased beneficiary.
  8. Ownership of Property
  9. The Grantor presently owns property (the "Property") as described in Schedule A.
  10. Assign and Convey Property to Living Trust
  11. __________, as Grantor, has or will assign, convey and deliver all of the rights, title and interest in the Property as described in Schedule A of this document as a gift and without consideration, to be held by this Living Trust.
  12. Amendment During Grantor's Lifetime
  13. At any time during the lifetime of the Grantor and while the Grantor is not Incapacitated, the Grantor may, subject to the other provisions of this section, alter or amend this Living Trust on delivery to the Successor Trustee of a written instrument signed by the Grantor. Amendments may include, but are not limited to, the following:
    1. The Grantor may change the number and identity of the Grantor, the Primary Trustee, the Successor Trustee or the Beneficiaries.
    2. The Grantor may add or withdraw property from this Living Trust.
  14. This Living Trust may not be amended after the death of the Grantor.
  15. Revocation During Grantor's Lifetime
  16. At any time during the lifetime of the Grantor and while the Grantor is not Incapacitated, the Grantor may, subject to the other provisions of this section, revoke this Living Trust in its entirety on delivery to the Successor Trustee of a written instrument signed by the Grantor. In the event of such revocation, the remaining Property will revert to the Grantor after all the debts and expenses attributable to the Living Trust have been paid.
  17. This Living Trust may not be revoked after the death of the Grantor.
  18. Distributions During the Lifetime of the Grantor
  19. During the lifetime of the Grantor and while the Grantor is not Incapacitated, the Acting Trustee will distribute as much of the income and principal of the Living Trust to the Grantor as the Grantor may request. While the Grantor is Incapacitated and no longer able to manage or continue to manage their own affairs, then the Acting Trustee may withhold or make payments out of the resources of this Living Trust of any amount that the Acting Trustee in their sole judgment deems appropriate for the maintenance, comfort and welfare of the Grantor.
  20. Distributions Upon Death of the Grantor
  21. Upon the death of the Grantor, and after resolving all applicable legal debts and obligations of the Grantor, the Acting Trustee will expeditiously act to distribute the remaining Property as directed in this section.
  22. After resolving all applicable legal debts and obligations of the Grantor, the  Acting Trustee will divide the rest and residue of this Living Trust into one hundred (100) equal shares (the "Shares") and distribute these Shares as follows (the "Final Distribution"):
    1. 100 Shares to __________ of __________, Virginia.
  23. Where a Beneficiary is a Minor Beneficiary at the time of the Final Distribution then the Acting Trustee may, at their sole discretion:
    1. Continue to act as Trustee by holding the Share of any Minor Beneficiary in a separate trust for that Minor Beneficiary under the same terms and conditions as outlined in this Living Trust, and to keep that Share invested, and pay the income or capital or as much of either or both as the then Acting Trustee considers advisable for the maintenance, education, advancement or benefit of that Minor Beneficiary until that Minor Beneficiary reaches the Age of Majority whereupon the then Acting Trustee will pay or transfer the rest and residue of that Share to that Beneficiary; or
    2. Pay or transfer all capital, assets and property of that Share or the amount remaining of that Share to any parent, custodian or guardian of that Minor Beneficiary subject to the same terms and conditions contained in this Living Trust and the receipt by that parent, custodian or guardian will discharge all duties and obligations of the Acting Trustee.
  24. Where a Beneficiary is an Adult Dependent Beneficiary at the time of the Final Distribution, the Acting Trustee may, at their sole discretion:
    1. Continue to act as Trustee by holding the Share of any Adult Dependent Beneficiary in a separate trust, subject to the same terms and conditions contained in this Living Trust, and to keep that Share invested, and pay the income or capital or as much of either or both as the then Acting Trustee considers advisable for the maintenance, education, advancement or benefit of that Adult Dependent Beneficiary; or
    2. Pay or transfer all capital, assets and property of that Share or the amount remaining of that Share of that Adult Dependent Beneficiary to any parent, custodian or guardian of that Adult Dependent Beneficiary subject to the same terms and conditions contained in this Living Trust and the receipt by that parent, custodian or guardian will discharge all duties and obligations of the Acting Trustee.
  25. If any of the named Beneficiaries do not survive the Grantor by at least thirty (30) days but do leave an heir or issue who survives the Grantor by at least thirty (30) days, then the Specific Gift or the Share designated for that Beneficiary, of whatever kind and character, and wherever located, will be distributed per stirpes among those surviving heirs or issue. Where those surviving heirs or issue are not of the Age of Majority, the Acting Trustee may pay or transfer all capital, assets and property attributable to those minor heirs or issue of that Beneficiary to any parent, custodian or guardian of those minor heirs or issue, subject to the same terms and conditions contained in this Living Trust, and the receipt by that parent, custodian or guardian will discharge all duties and obligations of the Acting Trustee.
  26. If any of the residual Beneficiaries do not survive the Grantor by at least thirty (30) days and do not leave an heir or issue who survives the Grantor, then the Share designated for that Beneficiary, will revert to the residue of this Living Trust.
  27. If all of the successor Beneficiaries do not survive the Grantor by at least thirty (30) days and do not leave an heir or issue who survives the Grantor by at least thirty (30) days, then all of the remaining property in this Living Trust, of whatever kind and character, and wherever located, will revert to the estate of the Grantor.
  28. If any of the real property to be distributed in this Living Trust remains subject to a mortgage at the time of the Final Distribution, then the Beneficiary taking that mortgaged property will take that property subject to that mortgage and the Beneficiary will not be entitled to have the mortgage paid out or resolved from the remaining assets or residue of this Living Trust.
  29. If any of the personal property to be distributed in this Living Trust is subject to any encumbrances or liens at the time of the Final Distribution, then the Beneficiary taking that property will take that property subject to those encumbrances or liens and the Beneficiary will not be entitled to have any encumbrance or lien paid out or resolved from the remaining assets or residue of this Living Trust.
  30. Trustee Bond
  31. Subject to the laws of the Commonwealth of Virginia and any other applicable jurisdiction, no bond or security of any kind will be required of any Trustee appointed in this Living Trust agreement.
  32. Trustee Liability
  33. The Trustee will not be liable to this Living Trust, the Grantor or to the Beneficiaries for any act or failure to act resulting in loss or harm to this Living Trust, the Grantor or to the Beneficiaries except in the case of gross negligence, willful misconduct, or reckless indifference to the purposes of the trust or the interests of the Beneficiaries. A Trustee will only be responsible for his or her own acts and no Trustee will be liable for any act occurring in the periods before or after the tenure of that Trustee. Any outstanding liabilities of a deceased, resigning or removed Trustee are not discharged or affected by the Trustee's death, resignation or removal.
  34. Trustee Death or Resignation
  35. A Trustee may resign at any time for any reason upon at least 30 days' notice to the Grantor, if the Grantor is still alive, to any remaining Trustee, if there are any, and to the Qualified Beneficiaries. If a Trustee dies, that Trustee will cease to be a Trustee as of the date of their death.
  36. Trustee Removal
  37. After the death of the Grantor, the Qualified Beneficiaries may, by unanimous vote of all of the Qualified Beneficiaries, remove a Trustee for any reason or for no reason at the sole discretion of the Qualified Beneficiaries.
  38. At any time after the death or disability of the Grantor, a Trustee or a Qualified Beneficiary may apply to a court of competent jurisdiction to remove a Trustee. A Trustee may also be removed by the court on the court's own initiative.
  39. Trustee Replacement
  40. At any time where the Grantor is alive and not Incapacitated and where a Trustee has been removed, died, resigned or is no longer able to act as Trustee for any reason, a replacement Trustee may be appointed by the Grantor.
  41. Where the Grantor is deceased or Incapacitated, and where a Trustee has been removed, died, resigned or is no longer able to act as Trustee for any reason, and where a replacement Trustee is deemed necessary by the remaining Acting Trustee, a replacement Trustee may be appointed by a majority vote of all Acting Trustee still able and authorized to act.
  42. Where the Grantor is deceased or Incapacitated, and where the Living Trust is left with no Trustee, a replacement Trustee may be appointed by a unanimous vote of the Qualified Beneficiaries.
  43. Trustee Powers
  44. Powers granted to an Acting Trustee of this Living Trust include, but are not limited to, the following:
    1. The Trustee will have the same rights and obligations to manage the Property as if the Trustee were the owner of the Property.
    2. After the death of the Grantor, the Trustee will have the power to appoint one or more individuals or institutions to act as co-Trustee where it is deemed reasonable and in the best overall interest of this Living Trust.
    3. The Trustee may employ and rely on the advice of experts including, but not limited to, legal counsel, accountants and investment advisors to help in the management of the Property where that hiring is deemed reasonable and in the best overall interest of this Living Trust.
    4. The Trustee may retain, exchange, insure, repair, improve, sell or dispose of any and all personal property belonging to this Living Trust as the Trustee deems reasonable and in the best overall interest of this Living Trust, without liability for loss or depreciation.
    5. The Trustee may invest, manage, lease, rent, exchange, mortgage, sell, dispose of or give options without being limited as to term and to insure, repair, improve, or add to or otherwise deal with any and all real property belonging to this Living Trust as the Trustee deems reasonable and in the best overall interest of this Living Trust, without liability for loss or depreciation.
    6. The Trustee may maintain, continue, dissolve, change or sell any business which is part of this Living Trust, or purchase any business on behalf of this Living Trust, as the Trustee deems reasonable and in the best interest of this Living Trust.
    7. The Trustee may purchase, maintain, convert and liquidate investments or securities, at reasonable risk, and for the purpose of generating income and growth, and vote stock in person or by proxy, or exercise any option concerning any investments or securities, as the Trustee deems reasonable and in the best overall interest of this Living Trust, without liability for loss or depreciation.
    8. The Trustee may open or close bank accounts wherever reasonable and in the best interest of this Living Trust.
    9. The Trustee may invest and reinvest the assets of this Living Trust, at reasonable risk, for the purpose of generating income and growth, as the Trustee deems reasonable and in the best overall interest of this Living Trust, without liability for loss or depreciation.
    10. The Trustee may hold un-invested cash and unproductive property where it is reasonable and in the best interest of this Living Trust to do so including, but not limited to, for the purpose of protecting the capital and principal of this Living Trust.
    11. The Trustee may lend funds to any borrower where the loan is adequately secured by sufficient collateral and where the loan is reasonable and in the best overall interest of this Living Trust.
    12. The Trustee may borrow funds from any lender and mortgage or otherwise encumber any asset belonging to this Living Trust where the loan is reasonable and in the best overall interest of this Living Trust.
    13. The Trustee may maintain, settle, abandon, sue or defend, or otherwise deal with any claim where it is reasonable and in the best interest of the Living Trust to do so.
    14. The Trustee may make the Final Distribution in any combination of cash and property. Property selection and valuation in the course of the Final Distribution will be made in the good faith discretion of the Trustee and will be binding on all Beneficiaries.
  45. It is incumbent on the Trustee to act as fiduciaries, in good faith and in the best interest of the Living Trust.
  46. All decisions of the Acting Trustee, made in good faith, regarding the management of this Living Trust will be final and binding on all parties.
  47. The above authority and powers granted to the Trustee are in addition to any powers and elective rights conferred by state or federal law or by other provisions of this Living Trust and may be exercised as often as required, and without application to or approval by any court.
  48. Trustee Compensation
  49. Any Trustee who is not a Beneficiary of this Living Trust will receive reasonable compensation out of the resources of this Living Trust for services rendered. A Trustee who is also a Beneficiary under this Living Trust will serve without compensation.
  50. Trustee Expenses
  51. A Trustee is entitled to be reimbursed out of the income and property of this Living Trust for any and all expenses, including interest where appropriate, where the expense is reasonably and properly incurred in the management of this Living Trust.
  52. Spendthrift Clause
  53. No Beneficiary of this Living Trust will have the power to transfer, sell, assign, or otherwise encumber any assets or property held by this Living Trust prior to the Final Distribution by the Acting Trustee. Similarly, the right of distribution held by any Beneficiary under this Living Trust agreement will not be subject to judicial encumbrance prior to the Final Distribution by the Acting Trustee.
  54. Outstanding Debts, Taxes or Funeral Expenses
  55. After the death of the Grantor, and prior to the Final Distribution, the Acting Trustee will pay all legally enforceable debts and taxes attributable to the Grantor out of the assets of this Living Trust.
  56. Tax Identification
  57. For tax purposes, this Living Trust will be identified by the Grantor's Social Security Number during the lifetime of the Grantor. After the death of the Grantor, the Acting Trustee will apply to the IRS for any necessary tax identification numbers.
  58. Homestead Tax Exemption
  59. If the principal residence of the Grantor is held within this Living Trust, the Grantor maintains the right to possess and inhabit the residence without rent and charge-free, for the duration of their lifetime. This is intended for the purpose of giving the Grantor a beneficial interest and possessor rights in the residence and to ensure that the Grantor does not lose any eligibility for a state homestead tax exemption that they would otherwise qualify for.
  60. Vote of Minor or Adult Dependent Beneficiaries
  61. Where a Beneficiary is a Minor or Adult Dependent Beneficiary and a vote, consent, or decision of the Qualified Beneficiaries is required, then the parent, custodian or guardian for that Minor or Adult Dependent Beneficiary, acting in the best interest of that Minor or Adult Dependent Beneficiary, will be allowed to take the place of that Minor or Adult Dependent Beneficiary for the purpose of that vote, consent, or decision.
  62. Termination of Trust
  63. This Living Trust will terminate where the Property of this Living Trust is exhausted through distributions.
  64. In the event that the Acting Trustee concludes that the value of the Property is insufficient to justify the cost of administration and that the aggregate value of the Property is less than $50,000.00 (USD), the Acting Trustee may terminate this Living Trust after providing notice to the Qualified Beneficiaries. Where this Living Trust is terminated under this section, the Acting Trustee will distribute the Property in a manner consistent with and as described in the distributions sections of this Living Trust.
  65. Abstract of Trust
  66. The Acting Trustee may execute an abstract of this Living Trust (the "Abstract of Trust") and may present the Abstract of Trust to a financial institution as proof of the existence of this Living Trust. The Abstract of Trust should not contain full details of the property holdings of the Living Trust nor should it name all of the Beneficiaries of the Living Trust. Any person who is presented with an Abstract of Trust with regard to this Living Trust will be held harmless for relying on the Abstract of Trust.
  67. Governing Law
  68. This Living Trust will be governed in accordance with the laws of the Commonwealth of Virginia.
  69. Severability
  70. If any provisions of this Living Trust are deemed unenforceable, the remaining provisions will remain in full force and effect.
  71. Definitions
  72. For the purpose of this Living Trust the following definitions will apply:
    1. "Acting Trustee" means any Trustee who is currently serving as a Trustee of this Living Trust.
    2. "Adult Dependent Beneficiary" means an adult beneficiary who is unable to manage their own financial affairs by reason of mental or other disability.
    3. "Age of Majority" means the age of majority of the jurisdiction where a beneficiary ordinarily resides.
    4. "Incapacity" or "Incapacitated" means when a person is unable to manage their own financial affairs by reason of mental or other disability.
    5. "Minor Beneficiary" means a beneficiary who is under the legal Age of Majority.
    6. "Trustee" means any Primary Trustee or Successor Trustee as well as any replacement or additional Trustee appointed for this Living Trust.
    7. "Qualified Beneficiary" means any beneficiary, who at the date the beneficiary's qualification to receive benefits from the Living Trust or act under the Living Trust is determined, is entitled to a benefit of this Living Trust.


IN WITNESS WHEREOF, the party hereto has signed their name on this the ________ day of ________________, ________ in __________, Virginia, declaring and publishing this instrument as the Grantors' Living Trust.


_________________________
__________ (Grantor)


ACKNOWLEDGEMENT OF NOTARY PUBLIC


COMMONWEALTH OF VIRGINIA

COUNTY OF ____________________

I ____________________________, a Notary Public in and for the said County and State, hereby certify that __________, having signed this Living Trust, and being known to me (or whose identity has been proven on the basis of satisfactory evidence), acknowledged before me on this day that, being informed of the contents of the conveyance, the Grantor has executed this Living Trust voluntarily and with lawful authority.

Given under my hand and seal, this ________ day of ________________, ________.


_______________________________
Notary Public for the Commonwealth of Virginia

County of _________________________

My commission expires: __________________________

Schedule A

The Grantor assigns, conveys and delivers to this Living Trust, all of the rights, title and interest, tangible or intangible, to the following properties, real or personal:

1. __________

Last updated May 18, 2022

What is a Revocable Living Trust?

A Revocable Living Trust is a document that allows you to place assets or property into a trust so they can seamlessly transfer to your beneficiaries after you pass away. Trusts are legal entities that hold assets for beneficiaries to eventually inherit. As its name suggests, you can amend or revoke the terms of a Revocable Living Trust at any time.

A Revocable Living Trust is also known as a:

  • Revocable trust
  • Revocable grantor trust
  • Revocable inter-vivos trust
  • Living revocable trust
  • Joint revocable trust

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What is the purpose of Revocable Living Trusts?

Revocable Living Trusts are valuable tools to use as part of your estate planning process.

If you pass away without a trust or Last Will, your assets will be distributed according to your state's intestate succession laws. If you decide to make a Last Will and Testament as part of your estate plan, your estate will be distributed according to your wishes documented in your Will. This process, known as probate, can take a long time.

A Revocable Living Trust avoids the public probate process, which means that your assets get distributed to your beneficiaries much quicker, usually in a matter of weeks rather than months or years.

A Revocable Living Trust can also serve other purposes, depending on your objective. Like with a Power of Attorney, a Revocable Living Trust can help with incapacity protection. Placing certain assets in a Revocable Living Trust can ensure that a trusted family member or friend, known as your successor trustee, can control the assets if you are incapacitated without needing a court's permission.

Who are the parties involved in a Revocable Living Trust?

A Revocable Living Trust involves the following parties:

Grantor

The grantor is the person who creates and places assets in a Revocable Living Trust. Sometimes, the grantor of a trust may also be referred to as the donor, trustor, or settlor.

When two people create a joint revocable trust, they are co-grantors. Most often, co-grantors are spouses who own and control the trust together.

Trustee

The trustee is the person who controls and manages the assets within the Revocable Living Trust. Most grantors name themselves as the trustee of their Revocable Living Trust so they can retain control of their assets during their lifetime.

Two people can act as co-trustees. For example, if two spouses create a trust, they can name themselves as the trust's co-trustees. In this case, when one spouse dies, the other usually assumes full responsibility for the trust.

As a grantor, if you appoint someone besides yourself as your trustee, they will have the ability to manage the trust's assets. Therefore, you need to take great care in ensuring their trustworthiness and competence.

Successor trustee

The successor trustee is the person who will manage the trust if the primary trustee passes away or becomes incapacitated. Suppose you name yourself as the trustee for your Revocable Living Trust and become incapacitated. In that case, your successor trustee can control the trust's assets without having to involve a court or take further action.

Beneficiary

The beneficiary is the person or entity entitled to benefit from the assets within the trust. You can name individuals, charities, or business entities as beneficiaries.

You can list multiple beneficiaries within a Revocable Living Trust. For example, if you transfer your homeownership to a trust, you can list all your children as the beneficiaries.

How to set up a Revocable Living Trust

To set up a Revocable Living Trust, follow these steps:

  1. Create a Revocable Living Trust document. Within it, you must name a trustee, list beneficiaries, and list the assets you will place in the trust.
  2. Sign the document and get it notarized. If you appoint someone other than yourself as the trustee, they must also sign.
  3. Transfer the ownership of assets into the name of your trust. This process varies depending on the type of asset. You will still have access and control over your assets.

If you become incapacitated, your trustee or successor trustee can manage the trust's assets. Upon your death, your trustee or successor trustee can seamlessly transfer the assets within your trust to your beneficiaries without having to go through the probate process.

Many people that create Revocable Living Trusts also create a Pour-Over Will for themselves. A Pour-Over Will transfers any of your remaining property into the trust when you pass away.

Who owns the property in a Revocable Living Trust?

As the grantor, you still own the property within a Revocable Living Trust. Despite transferring an asset's title to the name of your trust, the asset is still considered part of your property when you use a Revocable Living Trust.

The law still considers you the owner of the property within your Revocable Living Trust because you can change ownership of the property or terminate the trust at any time, and control the trust's contents as trustee. Therefore, you can be taxed for any income your Revocable Living Trust generates during your life.

What assets can I put in a Revocable Living Trust?

Generally, people place assets with high monetary value into Revocable Living Trusts. Some examples include:

  • Real estate property
  • Securities, such as stock, bonds, or mutual funds
  • Investments
  • Business interests, such as company shares and partnership interests
  • Bank accounts, cash, and notes payable
  • Valuable personal property, such as jewelry, artwork, and antiques

Typically, property with low monetary value or assets that need to be insured, like vehicles, are not placed into trusts.

How do I transfer property to or from a Revocable Living Trust?

You need to use a deed to transfer real estate to or from a Revocable Living Trust. Deeds are legal documents that transfer real estate property ownership. Generally, you can use either a Warranty Deed or Quitclaim Deed.

If you are transferring tangible personal property without a title or registration, such as jewelry or furniture, use either a Bill of Sale or Gift Deed.

To transfer a bank account to a Revocable Living Trust, you are best off inquiring with your bank about their process. Each financial institution has its own rules and requirements for transferring a bank account to a trust. Generally, you have to complete a Certificate of Trust as part of the process.

Is a Revocable Living Trust a disregarded entity?

Yes, Revocable Living Trusts are disregarded entities. This means that the IRS does not recognize them as entities separate from their owners. Although your Revocable Living Trust may have taxable income or property in its name, you do not need to file a separate tax return for it. Instead, you include the revocable trust's earnings within your personal tax return.

Can a Revocable Living Trust be changed?

Yes, you can change a Revocable Living Trust at any time up until your passing. Revocable Living Trusts are designed to be adjustable and give you control over your property. If necessary, you can revoke the trust in its entirety.

How can you change a Revocable Living Trust?

You can either use a trust amendment or a trust restatement to change a Revocable Living Trust. With both documents, the original trust remains in effect.

  • A trust amendment allows you to change specific provisions in your Revocable Living Trust while leaving all remaining provisions the same. Trust amendments are suitable when making minimal changes.
  • A trust restatement remakes an entire Revocable Living Trust without having to revoke it and start over. The original trust remains active, but the provisions of the trust restatement overrule its provisions. Trust restatements are suitable when making significant changes.

Like a Revocable Living Trust itself, you need to get trust amendments and restatements notarized.

Does a revocable trust become irrevocable upon death?

Yes, once a grantor dies, their Revocable Living Trust becomes irrevocable.

Advantages of Revocable Living Trusts

Revocable Living Trusts have numerous benefits, including the following:

1. You can revoke or amend it

Revocable Living Trusts are flexible in nature. Unlike irrevocable ones, revocable trusts allow you to amend them as needed and adapt to life's changes. For example, if you go through a divorce or acquire new assets, you can update the terms of the trust to reflect your new circumstances.

2. Your beneficiaries can avoid probate

By placing assets into a Revocable Living Trust, they can bypass the probate process after your passing. Revocable Living Trusts can ensure a seamless transfer of ownership to your beneficiaries and prevent delays. You do not have to place your entire estate into a trust to avoid the probate process. Instead, you may only consider certain assets, such as a family home.

3. You can plan for incapacity

With a Revocable Living Trust, you can plan for incapacity. If you appoint yourself as the trustee of your trust and name someone else as your successor trustee, you can ensure that they can control the trust's assets if you are incapacitated without having to seek out the approval of a court.

4. You can ensure your privacy

Probate court records are public records. Therefore, when your estate is distributed according to your Last Will, anyone can access the records that detail the distribution of your estate. In contrast, Revocable Living Trusts are not public. Therefore, you can ensure privacy for yourself and your beneficiaries.

Disadvantages of Revocable Living Trusts

1. You have to retitle property in the trust's name

To include assets in your Revocable Living Trust, you must transfer asset titles to the name of the trust. This process can take time and involve additional costs.

2. You have to be diligent in making amendments

When your financial or family circumstances change, you have to be diligent in amending your Revocable Living Trust to reflect your wishes. Failure to amend your trust could result in complications for your beneficiaries.

3. Your assets are not protected from creditors

Unlike with irrevocable trusts, assets in a Revocable Living Trust are not protected from creditors. The assets within your Revocable Living Trust are considered your property and could be claimed by creditors.

Related Documents:

  • Pour-Over Will: A special type of Will that works together with a Living Trust.
  • Quitclaim Deed: Transfers a property title from one party to another without the warranties of a full, clear title.
  • Warranty Deed: Transfer a property title with the guarantee of a clear title.
  • Last Will and Testament: Control where your assets go after death and name guardians for minor children.
  • End-of-Life Plan: Outline your last wishes (such as memorial services and obituaries) that aren't addressed in other estate planning documents.
  • Living Will/Health Care Directive: Express your medical wishes should you ever become unable to make health care decisions for yourself.
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