A revocable living trust is an estate planning document that is a good choice for many people who want to facilitate efficient asset transfers without losing control of the property while they are living. As you can see from the name of the trust, you have the power of revocation. If you ever choose to do so, you can revoke or dissolve the trust, and the assets in the trust would once again be in your direct personal possession.
Beyond the power of revocation, you also have the day-to-day power to control the actions of the trust while you are alive and well and the trust is intact. The trust administrator is called the trustee. The person who creates a living trust can act as the trustee at first, and the trust creator can also act as the beneficiary.
Successors are named in the trust declaration who would take over these respective roles after the passing of the grantor.
Funding a Revocable Living Trust
When you fund the trust, you transfer property into the trust. To do this, you would change the ownership registration of the property that you are conveying into the revocable living trust. You would make the trust the owner of this property, but you would be the trustee, so you would not be surrendering personal control.
The property is often listed on a document called a schedule, and you have the ability to convey property into the trust after the trust is originally created. This versatility is one of the benefits that you gain when you use a revocable living trust as an asset transfer vehicle.
Probate Avoidance
A major advantage that you realize when you use a revocable living trust instead of a last will as the centerpiece of your estate plan is the avoidance of probate. This is a legal process, and it is a major factor if you use a last will to state your final wishes. The will would be admitted to probate after your passing, and the court would supervise the administration of the estate.
Probate in New York is relatively efficient, but it simply takes some time for an estate to be probated, and the heirs must wait out the process before inheritances can be distributed. If everything goes perfectly and the estate is relatively simple to administer, it will take around nine months to a year for probate to run its course.
Assets in a revocable living trust can be transferred to the beneficiaries outside of probate.
Living Trust Information
We have an in-depth special report on the value of revocable living trusts that you can access through this website. The report is free, and you can visit this page to gain access if you would like to build on your knowledge: Free Revocable Living Trust Report.
- When Is Probate Necessary? - July 30, 2020
- Removing Life Insurance Without Triggering the Transfer for Value Rule - July 29, 2020
- Can You Give Gifts to Avoid Estate Taxes? - July 28, 2020
