There are many ways in which people can protect their assets both before and after their passing. Some people, after discussions with their estate planning attorney, choose to place some property, income and assets in a revocable living trust while they are still alive. Such trusts can be used to provide for a beneficiary, such as an adult special needs child who has needs that will not be paid by disability benefits or Medicare, or to provide for the individual who created the device.
A revocable living trust is a type of trust account that is set up while the person is still alive. Trusts can be revocable or irrevocable. Those that are revocable can be changed or ended by the person who started the trust. A revocable living trust requires the involvement of three main parties. These are the grantor, who is the person who establishes the trust; the trustee, who is the person or entity that will administer the trust; and the grantee, who is the beneficiary of the trust.
Revocable living trusts can be continued upon the grantor’s death. Property and assets contained in the trust are not subject to probate administration and the accompanying associated probate fees. The property that is contained in the trust will continue to benefit the trust’s grantees.
A revocable living trust can be an important portion of a person’s estate plan. While it may not supplant the need for a will, a trust can be used in addition to ensure the avoidance of some probate expenses. Since the trusts can be established to manage assets while a person is still living, the grantor may choose to name him or herself as the trustee while he or she is still living. People may wish to discuss the possibility of establishing such a trust with their estate planning attorney.
Source: The Missouri Bar , “What is a revocable living trust?“, November 18, 2014