Revocable Living Trust Merge For Free

A joint revocable trust is a single trust document that two persons establish to hold title to assets which they typically own together as a married couple.If one spouse becomes incapacitated, the other spouse continues to control the trust assets and can use the assets for both couples' care.

The key characteristic of a trust is that it permits the separation of legal ownership and beneficial interest: the trustees become the owners of the trust property as far as third parties are concerned, and the beneficiaries are entitled to expect that the trustees will manage the trust property for their benefit.

Oftentimes a trust agreement will contain a provision that specifically authorizes the trustee to consolidate or merge trusts.The other trust, however, might only allow the trustee to merge two or more trusts if the trust terms, as well as the beneficiaries, are identical.

Merger of Trusts There is no central Act that governs trusts, but each State has enacted its own Act that governs trusts. Section 50A(2) of the Bombay Public Trusts Act allows two or more public trusts to be amalgamated or merged into one single legal entity by framing a common scheme of management or administration.

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.

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.

This is not possible, as a trust is not a person.It is important to note that in the absence of such power of appointment, which is carefully worded, a trustee cannot simply appoint trust property to another trust that is named as a beneficiary of the trust.