What is a Revocable Trust?

A revocable trust is an instrument of estate planning used to maintain control of your possessions while you’re still alive, while providing a way to pass on those possessions to others after you pass away. Essentially, it allows you to plan for what will happen to your assets when you die or become incapacitated without having to go through the technicalities of creating a will or other more complicated instruments. It is one of the most widely used and effective estate planning tools available.

What is the Purpose of a Revocable Trust?

The purpose of a revocable trust is twofold:

First, it allows you to maintain control of your possessions for as long as you’re alive. This means that you can still make decisions about how your assets will be managed, distributed, and eventually passed on to others. This level of control also extends to how your beneficiaries will receive distributions from the trust.

Second, it provides a way for you to avoid probate, which is the process of passing assets from one person to another after they pass away. This is done by transferring the assets in question into the trust. You can do this while you’re still alive and can make changes to the trust at any point, as it is a revocable instrument. Once your assets are inside the trust, they are no longer within your estate, meaning they do not need to go through the long and expensive probate process.

Who Can Set Up a Revocable Trust?

Anyone can set up a revocable trust, but it’s always a good idea to involve a lawyer when dealing with matters of estate planning. A lawyer will help you create the trust and make sure that all of the necessary documents are in line. It’s important to involve a lawyer because, without one, you may accidentally make errors that could lead to legal issues down the line. Lawyers can also help you ensure your assets are properly distributed and that the trust is properly managed, so that the assets you have set aside are ultimately passed on the way you wish.

In conclusion, a revocable trust is a powerful instrument of estate planning that can provide a way to maintain control of assets while you’re still alive and to pass them on in a way that avoids probate. It is important to involve a lawyer when creating a revocable trust as they can help to make sure that the trust is properly set up and managed.