A revocable living trust has become an integral part of the process when it comes to estate planning. If you are debating the merits of using such a trust, or you would just like to know a little bit more about them, the following questions should provide you with a basic understanding.
1. Who creates a revocable living trust?
The creator of the trust, and the person whose property is usually placed into the trust, is known as the “settlor.”
2. When is the trust created?
The settlor creates a revocable living trust while he or she is alive (thus, the name), as opposed to a testamentary trust, which is created within one’s will at the moment of death.
3. Does the settlor have any control over the trust?
After the settlor creates the trust, he or she pretty much keeps full ownership and control over the trust’s property. The settlor can revoke or amend the trust at any point after its creation; however, after the settlor dies the trust is irrevocable and cannot be changed under most circumstances.
4. Is there anything I must have to create a revocable living trust?
Actually, there are several things that one must have in order to create a revocable living trust. First, the trust must have a lawful purpose that is readily ascertainable by persons reading the trust document. Second, the trust must have a trustee to manage and look after the trust and its property. Third, the trust must have property. Fourth, the trust must have beneficiaries.