A revocable living trust is a legal arrangement and agreement where the person owning the property (the Settlor) transfers legal title of that property to a Trustee (the person who manages that property), for the benefit of someone (the Beneficiary).
Generally during lifetime, the Settlor, the Trustee and the Beneficiary of the trust are the same person (or persons if you are married), but the Trustee position will pass to the person named in the trust upon incapacity or death.
The Settlor does not give up any rights to use or sell the property, but simply puts the legal control in the name of the Trustee. This allows for any incapacity, avoiding probate and deterring or eliminating estate taxes at death.
Revocable trusts are just that, revocable and amendable during lifetime and while you have capacity.
You remain in control, but determine who should take over the management of your assets in the event you are unable to do so.
The successor Trustee position is an extremely important position. Selection of this person should be carefully considered. Don’t think you must name a certain person just so their feelings aren’t hurt. You must name a person who can deal with the issues. If you are unsure, you may want to consider a certified professional fiduciary. There are always alternatives.
There are various types of trusts: Individual, A-B, A-B-C, QTIP, Testamentary, Insurance, and others. One size does not necessarily fit all.
