A revocable living trust is a legal document that allows you to transfer ownership of your assets to a trust during your lifetime. As the grantor or creator of the trust, you can serve as the trustee and retain control over the assets, while also designating a successor trustee to manage the trust and distribute the assets after your death.
Here are the basic steps involved in setting up and using a revocable living trust:
1. Create the trust: You’ll need to draft and sign a trust document that outlines the terms of the trust, including the name of the trust, the trustee, the beneficiaries, and how the assets should be managed and distributed.
2. Transfer assets to the trust: You’ll need to transfer ownership of your assets, such as your home, bank accounts, and investments, to the trust. This typically involves changing the title of the assets to the name of the trust.
3. Manage the assets: As the trustee, you can continue to manage and use the assets in the trust as you normally would. You can also amend or revoke the trust at any time as long as you are still mentally competent.
4. Avoid probate: When you die, the assets in the trust will pass to your beneficiaries without going through probate court. This can save time and money, and provide privacy for your family.
5. Provide for incapacity: If you become incapacitated, the successor trustee can step in and manage the assets in the trust on your behalf, avoiding the need for a court-appointed conservatorship.
Overall, a revocable living trust can be a flexible and effective estate planning tool that can provide peace of mind for you and your family. However, it’s important to work with a qualified estate planning attorney to ensure that the trust is properly drafted and implemented to meet your specific needs and goals. If you would like to find out more about whether a Revocable Living Trust is a strategy that will work for you and your family, give us a call to set up an appointment. We can help you think through how to design your trust in a way that achieves your goals and protects the inheritance you want to leave for family members and loved ones. Call our office at 410-721-1660 or fill out our contact form to schedule a meeting and we will be in touch to get that scheduled.