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 South Dakota Living Trust — Revocable is a legal document that allows individuals to protect and manage their assets during their lifetime and ensure a smooth distribution of their estate upon their passing. It provides a flexible and effective way to transfer property and avoid probate, which is the court-supervised process of distributing a deceased person's assets. A revocable living trust in South Dakota, also known as an inter vivos trust, can be altered or revoked by the granter (the person establishing the trust) during their lifetime, offering great flexibility and control. The trust is considered "living" as it is created during the granter's lifetime and "revocable" because it can be modified or terminated if circumstances change. This type of trust offers several advantages, including privacy, as the trust document is generally not made public like a will is after probate. It also allows for the smooth transfer of assets upon the granter's death without the need for court intervention, which can save time, reduce expenses, and minimize potential disputes among beneficiaries. There are various types of revocable living trusts in South Dakota that cater to different needs and priorities: 1. Individual Revocable Living Trust: This type of trust is created by an individual for their own benefit and typically involves naming themselves as the trustee, allowing them full control and access to assets during their lifetime. 2. Joint Revocable Living Trust: A joint trust is established by married couples or domestic partners to hold and manage their shared assets. Both partners act as trustees and have access to the trust's assets. Upon the death of the first partner, the surviving partner maintains control over the trust and can modify or revoke it. 3. Testamentary Trust: A testamentary trust is not revocable during the granter's lifetime but is created through a will and only goes into effect upon the granter's death. The trust is funded by assets passing through probate, and trustees are appointed to manage and distribute the assets according to the terms outlined in the trust document. 4. Charitable Revocable Living Trust: This type of trust allows a granter to leave assets to charitable organizations while retaining control and benefits during their lifetime. Upon the granter's death, the trust's assets are distributed to the designated charitable beneficiaries. 5. Supplemental Needs Trust: This trust is designed to protect the assets of individuals with disabilities while still allowing them to receive government assistance if eligible, such as Medicaid or Supplemental Security Income. 6. Standalone Retirement Trust: This type of trust is specifically created to receive retirement accounts upon the granter's death, providing tax advantages and allowing for efficient distribution among beneficiaries. It is important to consult with an experienced estate planning attorney in South Dakota to determine which type of revocable living trust best fits your specific needs and goals. They can assist in setting up the trust, drafting the necessary legal documents, and providing guidance on funding the trust with assets to ensure its effectiveness.
