A Revocable Living Trust is designed to distribute your property once you die, without the need for Probate. The Living Trust, or inter vivos (Latin for “among the living”) Trust, gets its name because the Trust is created when you are alive. It is “revocable” because you can revoke or change it at any time as long as you are mentally competent. During your lifetime, you still own all the property that is transferred into the Trust and may still buy, sell or transfer your property.
The Living Trust looks very much like a Will in that it can create detailed instructions on how you want your property to be managed when you die. But, unlike a Will, a Trust:
• Helps avoid Probate, which can be time consuming and expensive.
A Trust is not subject to Probate, so the successor trustee can distribute your property as you direct without having to go to court and proving the Trust is valid.
• Creates property management
A Trust can manage property for those who cannot, should not, or do not want to manage it for themselves. You can create a Trust to protect a beneficiary from squandering his or her inheritance by releasing a certain amount of money when the person reaches a specific age, on an annual basis, or any number of events.
• Provides your family with added privacy
Unlike a Will that becomes public once it is probated, a Trust remains private and must only be revealed to successor trustees and beneficiaries unless someone challenges it.
• Provides for the limited and successive enjoyment of property over several generations