A Revocable Living Trust is the best and most efficient way to transfer your assets to your beneficiaries, who are usually your children. It is a written, legal document which provides instructions on how your assets are to be handled during your lifetime, upon your disability, and then upon your death.
A Revocable Living Trust has three (3) positions:
1. The Grantor. This person can also be called the Settlor or Trustor. The Grantor is the person who gives the attorney all of the information to be put into the Trust document. Who are the beneficiaries? Who are the Successor Trustees if I, the Grantor, become disabled or pass away?
2. The Trustee. This is the person who is charged with carrying out your instructions exactly the way that you have written down in the Trust document.
3. The Beneficiary. This is the person who benefits from the Trust.
In most cases, my client or clients are in all three (3) positions upon the signing of the Trust document or documents.
The client creates the Trust as the Grantor. The client manages the Trust assets as the Trustee. And the client also benefits from the Trust assets which pay the bills, keep him or her warm and cool in the house titled in the Trust, and the Trust assets may pay for a vacation to Disney World in Orlando, Florida.
After you sign your Trust or Trusts, you MUST re-title your assets or fund your Trust. This means that your checking account must be re-titled by going to the bank with the funding letter which we provide for you, and telling the bank that that checking account should be re-titled into your Trust name.
After you re-title your assets into your Trust name, everything is on cruise control. No matter what happens, your assets will be managed by the persons whom you appoint as your Successor Trustees.
The Probate Court does NOT control assets titled in your Trust. So if you become disabled, there are no Guardianship proceedings. If you pass away, there is no Death Probate. Your family members take care of everything, and it is totally private.
We like to encourage our clients to put in language which makes the Trust continue after your death for the benefit of you children. In this way, your Trust assets can be protected from the creditors of your children. This is a huge benefit for the family members!