what is a living trust? a revocable living trust, or a living revocable trust, is a trust which is created during the lifetime of the person who establishes the trust, also referred to as a “testator.” The revocable living trust, meant to deal with wills trusts and estates, is also known as an “inter vivos trust.” The key feature of the inter vivos or living trust is that the testator may revoke, modify or alter the terms of the trust at any time.
The revocable living trust must meet certain requirements such as filling out all the living trust forms. First, the trust must contain the testator’s intent to create the trust. In addition, the trust must contain assets or property, also known as the “res” of the trust. Furthermore, the revocable living trust must have identifiable beneficiaries. In addition, the trust must have a trustee, future trustee executor, appointed who will oversee the administration of the trust property. The trustee could be the testator or there could be more than one trustee, such as husband and wife who serve as co-trustees.
Probate for Revocable Trusts
Frequently, trusts are sought in order to avoid probate. Probate is the formal submission of a will to court where the will is administered pursuant to court oversight. Use of the trust avoids this process, in addition to the costs involved in probate, which include both court costs and legal fees. Also, the use of a trust eliminates the delay of the transfer of property, as the property is not tied up with the probate of a will. Moreover, use of a trust avoids the trust property and distribution from becoming a public record. The use of a revocable living trust does not result in any tax advantages for the trusts and estates; thus, the trust does not eliminate federal or state estate or inheritance taxes.
Medicaid & Legal Help
The revocable living trusts are frequently utilized for an individual’s residential property. However, when the property is placed in a revocable living trust, the property is not sheltered for Medicaid purposes; therefore, living trusts are usually not common with Medicaid estate plans. Ultimately, revocable living trusts are not effective for every estate plan. An experienced estate planning attorney can review your personal objectives and interests and assist in creating an appropriate estate plan which may or may not include a revocable living trust.