Trustor and trustee enter into an agreement to create a revocable living trust. The purpose of the creation of the trust is to provide for the convenient administration of the assets of the trust without the necessity of court supervision in the event of the trustor's incapacity or death. Other provisions of the trust document include: trust assets, disposition of income and principal, and administration of the trust assets after the death of the trustor.
A Michigan Living Trust — Revocable, also known as a revocable living trust, is a legal document that individuals create to manage and distribute their assets in Michigan during their lifetime and after death. This type of trust is revocable, meaning it can be changed, modified, or completely revoked at any time by the person creating it, known as the granter or settler. Michigan Living Trusts — Revocable offer numerous benefits, including flexibility, privacy, and probate avoidance. By establishing a revocable living trust, individuals can maintain control over their assets while also providing for the seamless transfer of those assets upon their death. When creating a Michigan Living Trust — Revocable, there are various types or considerations to be aware of: 1. Individual Revocable Living Trust: This is the most common type of revocable living trust, established by an individual on their own behalf. The individual serves as both the granter and the trustee, maintaining control over the trust assets during their lifetime. 2. Joint Revocable Living Trust: This type of trust is created by a married couple, with both spouses serving as contractors. They maintain joint control over the trust assets during their lifetimes and often designate successor trustees to manage the trust after the death of both spouses. 3. AB Trust or Marital and Family Trust: This type of trust is commonly used by married couples to minimize estate taxes upon the death of the first spouse. Upon the death of the first spouse, the trust splits into two separate trusts: the marital trust, also known as the A trust, and the family trust, also known as the B trust. The marital trust provides for the surviving spouse while minimizing estate taxes, and the family trust preserves assets for the benefit of heirs or children. 4. Testamentary Revocable Living Trust: While not technically a living trust, some individuals opt to establish a testamentary trust within their will. This type of trust only becomes effective upon the granter's death and allows for asset distribution based on specific instructions outlined in the will. Creating a Michigan Living Trust — Revocable requires careful consideration of the granter's assets, beneficiaries, and desired distribution methods. Seeking professional legal advice from an estate planning attorney experienced in Michigan law is crucial to ensure the trust accurately reflects individual wishes and complies with all legal requirements.
