The majority of people use a will to provide instructions concerning the distribution of their property after death.
But it is not the only estate planning tool available for such purposes. Some people opt to go in a different direction such as the drafting of a Revocable Living Trust (RLT).
All trusts revolve around three parties:
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the grantor (the person creating the trust and providing the assets to fund it),
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the trustee or trustees (who manage the trust assets),
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and the beneficiary or beneficiaries (those named to benefit from or utilize trust assets).
In a trust, a designated trustee becomes responsible for managing the property and other assets owned by the trust.
One of the most misunderstood estate planning documents is a Revocable Living Trust (RTL).
A Living Trust is one established while the grantor is still alive. A Revocable Trust means the grantor can amend the documents as long as they are mentally competent.
During the grantor’s lifetime, he or she creates a Trust and then must transfer ownership of their assets into it. These assets are then managed by the named grantee, and upon the grantor’s death, pass according to the directions contained within the document. However, many people do not need or want this form of estate planning.
When is a Revocable Living Trust beneficial?
Continue Reading: https://rkalegal.com/estate-planning/what-is-a-revocable-living-trust/
Article submitted to MSRN from Richard Abraham, ESQ https://www.mdseniorresource.org/services-directory/1417/abraham-bauer-llc-richard-abraham/
