• Charlotte: +704.369.9977
  • Fort Mill: +803.594.4453
Consultation Request
Share

NC and SC Estate Planning and Elder Law Firm

Thursday, August 26, 2021

What Is a Revocable Living Trust?

The idea of establishing a trust may be intimidating for some people. Trusts have developed a reputation as only being for the wealthy. The truth is, however, that many people could benefit from establishing a trust as part of their estate plans. There is a wide range of trust types, each of which serves different purposes and offers different protections. Here, we will discuss revocable living trusts.

What is a Revocable Living Trust?

A revocable living trust is established by transferring property into the trust and designating a trustee to manage the trust property for the benefit of the beneficiaries. As long as you are a competent adult, you can establish a revocable living trust. In fact, you can also act as trustee of the trust for your lifetime and designate a successor trustee to take over when you pass away. This is most often the case with a revocable living trust.

While the assets you transfer into the trust will be considered to be owned by the trust, you can still retain some control over them as the trust terms can be amended or changed at any time. This is what sets a revocable trust apart from an irrevocable trust which cannot be changed, amended, or terminated except under extremely limited circumstances. Income earned by assets held in the trust still passes to you and will be considered taxable. The assets themselves will not transfer until the terms set forth in the trust are met, such as upon your death or under other specified conditions.

There are several key advantages to establishing a revocable living trust. For instance, assets held in a revocable trust will avoid probate. The assets held in the trust are considered to be owned by the trust, not the trust grantor. So, when the grantor passes away, the trust assets pass outside of probate according to the terms set forth in the trust document. This is a big benefit because probate can be costly, time-consuming, and lack privacy. Probate assets and the contents of a probate estate go through the court system and become a matter of public record. Anyone can access these records. Furthermore, while still offering these benefits, revocable trusts offer flexibility in being able to change and amend the trust terms while you are still alive.

These benefits can greatly outweigh any potential disadvantages of establishing a revocable trust. For instance, it can be a nuisance to have to retitle property you want to transfer into the trust. It can also be a pain to maintain trust books and records, but essential in order to monitor any adjustments and changes you may want to make to the trust. It is also a reality that revocable trusts may not offer the level of asset protection many people mistakenly assume they will provide. In fact, revocable trusts offer little asset protection when the grantor retains ownership interest in the trust corpus, such as when the grantor also names himself or herself as trustee of the trust.

Estate Planning Attorney

Are you interested in establishing a comprehensive estate plan that includes a trust? The knowledgeable team at Monk Law can discuss your options with you and design an estate plan tailored to meet your unique needs and goals. Contact Monk Law today.


Archived Posts

2021
2020
December
November
October
September
August
July
June
May
April
March
February
January
2019
2018
December
November
October
September
August
July
June
May
April
March
February
January
2017
December
November
October
September
August
July
June
May
April
March
February
January
2016
December
November
October
September
August
July
June
May
April
March
January
2015
December
November
October
September
August
July
June
May
April
March
February
January
2014
December
November
October
September
August
July
June
May
April
March
February
January
2013


Monk Law Firm, PLLC assists clients throughout Charlotte, Rock Hill, Fort Mill and the surrounding areas.



© 2021 Monk Law Firm, PLLC | Disclaimer
1701 First Baxter Crossing, Suite 101, Fort Mill, SC 29708
| Phone: 803-594-4453
6000 Fairview Road, Suite 1200, Charlotte, NC 28210
| Phone: 704-369-9977

Estate Planning | Elder Law / Medicaid Planning | Guardianships | Probate / Estate Administration | Special Needs Planning | Veterans Benefits | Business Law | Business Succession Planning | Florida Veteran's Aid and Attendance | Covid-19 Update

Law Firm Website Design by
Zola Creative