Revocable Trusts

The use of a revocable trust allows the Grantor to name a Trustee (most often himself or a spouse) to handle his assets during his lifetime and after his death. After the Grantor’s death, a successor Trustee handles the trust assets and distributes them in accordance with the provisions of the Trust.

A revocable trust allows you to avoid probate and keep your affairs private. However, the Grantor must “fund” the trust, or re-title assets in the name of the Trustee of the revocable trust. Otherwise, distribution of the assets is governed by the individual’s will and will need to go through a probate administration. A revocable trust is flexible; it can be amended or revoked at any time and the Grantor retains the right add and subtract assets as he wishes. It also allows the Grantor to establish lifetime trusts for his beneficiaries to protect the trust’s assets. The trust instrument can also provide specific restrictions on how and when assets are distributed to a child, such as upon completion of college or attaining a certain age.