Revocable Living Trust Delete Sticky Notes For Free

As far as the Internal Revenue Service is concerned, trust property belongs to the grantor. The grantor names a trustee to manage the assets, but during their lifetime, most people name themselves in this position. A successor trustee is named to carry on when the grantor dies or becomes incapacitated.

A revocable trust is a part of estate planning that manages and protects the assets of the grantor as the owner ages. The trust can be amended or revoked as the grantor desires and is included in estate taxes.

Disadvantages of Revocable Trusts These arise from the different treatment of trusts and wills under certain property laws. As noted, in order to be included in a revocable trust, property must be reregistered in the name of the trust. This may be cumbersome and may involve other costs such as filing fees.

When the grantor, who is also the trustee, dies, the successor trustee named in the Declaration of Trust takes over as trustee. The new trustee is responsible for distributing the trust property to the beneficiaries named in the trust document.Notify beneficiaries that the trust exists, if necessary.

As long as you're mentally competent, you can remove property from your revocable trust at any time. If you're not competent, your successor trustee or power of attorney can do so. It's simply a matter of reversing the process by which you funded the trust with the property in the first place.

Irrevocable trusts can remain up and running indefinitely after the trustmaker dies, but most revocable trusts disperse their assets and close up shop. This can take as long as 18 months or so if real estate or other assets must be sold, but it can go on much longer.

While you're alive, everything in the trust is considered your personal property.Its primary purpose is to avoid probate court, since revocable living trusts do not reduce estate taxes. With a revocable trust, your assets will not be protected from creditors looking to sue.