Whether a trust is to be revocable or irrevocable is very important, and the trust instrument should so specify in plain and clear terms. This form is a revocation of a trust by the trustor pursuant to authority given to him/her in the trust instrument. This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
A revocable trust, also known as a living trust, is a legal arrangement where an individual, called the granter or settler, transfers ownership of their assets or properties into a trust. The granter appoints a trustee to manage and administer the trust in accordance with their stated instructions and beneficiaries' best interests. A trustee is a person or entity responsible for overseeing the trust assets and ensuring that the terms of the trust are followed. They are entrusted with the duty to manage the trust and execute the granter's wishes as set forth in the trust agreement. Now, let's explore some different types of revocable trusts and trustees: 1. Revocable Living Trust: This is the most common type of revocable trust, where the granter places their assets into the trust during their lifetime and retains control over the trust and assets. The granter can modify or revoke the trust, as the name suggests. The granter often serves as both the trustee and the initial beneficiary during their lifetime. 2. Testamentary Trust: Unlike a revocable living trust, a testamentary trust is established through a will and comes into effect after the granter's death. The granter designates a trustee to manage and distribute the assets to the beneficiaries according to the terms of the will. 3. Credit Shelter Trust: This type of trust, also known as a bypass trust or family trust, aims to minimize estate taxes upon the granter's death. It allows a granter to pass wealth to their beneficiaries while utilizing both spouses' federal estate tax exemptions. 4. Qualified Personnel Residence Trust (PRT): This trust enables the granter to transfer their primary residence or a second home to the trust while retaining the right to continue living in it for a specified period. The PRT's primary objective is to reduce potential estate tax liability while eventually transferring the property to designated beneficiaries. 5. Charitable Remainder Trust: In this type of revocable trust, the granter transfers assets to the trust while designating a charitable organization as the ultimate beneficiary. The granter or other non-charitable beneficiaries can receive income from the trust for a specific period, after which the remaining assets pass to the chosen charity. It's important to consult with an estate planning attorney or financial advisor to determine the most suitable type of revocable trust and trustee based on your specific needs, goals, and the nature of your assets. They can guide you through the process, ensuring that your assets are protected and efficiently distributed to your intended beneficiaries while taking advantage of applicable tax benefits.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
