What is a Revocable Living Trust?
A revocable living trust is an entity to which individuals may transfer ownership of certain real or personal property, like a home, a precious family heirloom, an insurance policy or company stock.
There are many benefits to creating a revocable living trust. For starters, it gives an individual the ability to establish an asset distribution plan. Additionally, and different from the distribution of assets through one’s will, the transfer of any property owned by the trust avoids the oft times expensive and time-consuming probate process.
Further, the trust can be used to establish a plan for one’s own care in the event the individual becomes incapacitated in the future.
When an individual establishes a living trust, that individual is generally referred to as the “Settlor” and/or “Grantor”. The Grantor creates a trust agreement – a contract – which then governs the administration of the trust assets, even after death. After creating and executing the trust agreement, the Grantor funds the trust with the property and assets of their choice, and then appoints a trustee to administer it.
Quite commonly, though not necessarily, the Grantor will serve as the initial trustee and manage the trust assets while alive. Upon death of the Grantor, the trust agreement establishes how the remaining trust property should be managed and/or distributed.
The experienced professionals at Erwin Law have, for almost 30 years, been guiding individuals and families through the intricacies of estate planning, ensuring their Clients’ wishes are honored. If you’re interested in learning more, feel free to reach out to Jim Erwin, at 773-525-0153 or at firstname.lastname@example.org.