Revocable Living Trust

A Revocable Living Trust, Family Trust, Shelter Trust, Living Trust, or Common Trust are just a few of the names given to this form of trust. There are three parties involved in a Revocable Living Trust; the settlor/grantor, the person who has the trust created; the trustee, the person/s who will manage the trust as per the instructions of the settlor; and the beneficiary/ies, the person/s that will receive the income, assets, or property in the trust. This type of trust can be revoked, changed, or canceled at any time by the settlor and is principally used to circumvent probate, lessen estate taxes, manage finances, and maintain financial privacy. The settlor establishes the trust while he/she is alive and he/she can make changes to the trust as financial situations change and even retrieve property and/or assets assigned to the trust. A Revocable Living Trust establishes instructions for a trustee on how to manage the income, assets, and property assigned to it while the settlor is alive as well as how to allocate the income, assets, and property to the beneficiaries after the settlor’s death. Typically, a living trust becomes irrevocable upon the death of the settlor. That means that the trust cannot be altered after the death of the settlor.

Do you wish to set up or have questions about the benefits of a Revocable Living Trust? Contact our law firm for an experienced Louisville Estate Planning Lawyer and receive financial advice and answers to all your questions about the advantages of a Revocable Living Trust!

It is a good idea to name yourself and/or your spouse as the primary beneficiary/ies when you first set up a trust as well as the beneficiaries in the event of your death. A Revocable Living Trust grants the settlor much more flexibility than other forms of trusts or wills. You can start a trust with a minimal amount of money. People do this as a way of having the trust for future use. This is referred to as an unfunded trust and is particularly beneficial for people that want to add assets to the fund later in life for retirement or in case of disability. Adding assets to your unfunded trust later in life gives you the benefit of having control of your assets while you wish to manage them while allowing you the option of transferring your assets at any time. An unfunded trust can also be used in place of guardianship or you can have your assets transferred into it after death. With a Revocable Living Trust, you have control of your trust and you can add or change the assets in your trust, as you need to.

The benefits of having a Revocable Living Trust include:

• Property/Asset Management – in the event that you become disabled and/or unable to manage your financial affairs, the trustee will take over the management of your trust
• Provisions for Guardian Care and/or Financial Support – you can provide for your family in the event of your death
• Avoid Probate – any property or assets within your trust are spared the process of probate after your death and are distributed directly to your beneficiaries
• Confidentiality – unlike probate records, a Revocable Living Trust is not part of the public records

Do you wish to set up or have questions about the benefits of a Revocable Living Trust? Contact our law firm for an experienced Louisville Estate Planning Lawyer and receive financial advice and answers to all your questions about the advantages of a Revocable Living Trust!