A Revocable Trust is a fundamental component of an estate plan. It is created by an individual (also known as the Grantor) during his or her lifetime, and can be revoked or amended by the Grantor at any time he or she is living and not incapacitated. All assets owned by a Revocable Trust are managed by the Trustee, which in most cases is also the Grantor. Upon the Grantor’s death, the designated successor Trustee will step into the role and administer the distribution of the Grantor’s assets.
Similar to a Will, a Revocable Trust serves as the Grantor’s primary estate planning vehicle by directing the distributions of assets upon the Grantor’s death. However, unlike a Will, the Revocable Trust affords many additional benefits during the Grantor’s lifetime and upon death.
While living, a Revocable Trust provides the Grantor with significant protection should he or she become incapacitated. In the event of such incapacity, the successor Trustee can immediately step in and act on the Grantor’s behalf to manage the assets. A Revocable Trust will include expansive provisions that permit the successor Trustee to make payments on the Grantor’s behalf for all medical, social and financial needs.
Upon the Grantor’s death, the successor Trustee will then manage the trust estate, as governed by the specific terms of the Revocable Trust. Most importantly, this includes the distribution of assets to the Grantor’s intended beneficiaries. Additionally, unlike a Will, a Revocable Trust has a separate legal identity and therefore assets passing from the Trust avoid the probate process. By avoiding this public process, a Revocable Trust escapes the significant expenses inherent with probate, while also providing the estate with a level of privacy that cannot be accomplished by a Will.
At Morris Law Group, we can handle the process of preparing and/or maintaining your Revocable Trust. Our expert attorneys and paralegals have the years of experience needed to assist you in creating or maintaining a revocable trust or will based Wealth Preservation Solution. Contact our office today!