4 Life Saving Facts You Must Know About Revocable Living Trusts

Posted by smith clea on August 8th, 2022

• A revocable living trust is a legal document that allows you to control how your assets are distributed after you die.
• You can name yourself the trustee, which gives you the power to make changes to the trust as long as you're alive.
• After you die, the trustee will distribute your assets according to your instructions.
• A revocable trust becomes irrevocable when you die, which means that your instructions cannot be changed.

What Is An Irrevocable Trust?

An irrevocable trust is a type of Living Trust that cannot be modified or terminated by the grantor without the consent of the beneficiaries. 

This means that once the trust is created, the grantor gives up all control over it and its assets. 

The trustee is then responsible for managing the trust according to the terms outlined in the trust agreement.

What Is A Revocable Living Trust?

A revocable living trust is a legal document created by an individual, also known as the grantor or settlor. 

The trust holds assets for the benefit of named beneficiaries. 

The grantor retains the power to revoke or change the terms of the trust at any time.

After creating a revocable living trust, the grantor would be able to do whatever they wanted with their property and other assets that were in their name before the trust was created.

Assets put into a revocable living trust would not pass-through probate and would still be considered owned by the grantor after their death.

Common Mistakes To Avoid When Creating Your Will

One common mistake people make when creating their will is not being specific enough. 

This can cause problems down the road if your wishes are misinterpreted.

Another mistake is not updating your will. 

As your life changes, so should your will. 

You should also avoid making assumptions about what your loved ones will do after you're gone. 

Lastly, don't forget to sign and date your will.

Trust litigation may arise if your will is not created correctly.

Trust litigation refers to disputes between two parties that make or take part in the administration of trusts. 

Trusts are legal instruments that ensure you can transfer property to someone else. 

Who will then be responsible for managing the assets on your behalf while they are held in trust? 

There are two types of trusts, testamentary and inter vivos. 

Testamentary trusts are created when you leave the property in your will. 

Whereas inter vivos trusts, also known as revocable vs irrevocable living trusts, are created during your lifetime, with specific instructions on how to manage the assets being put into place before you die.

Rights, Duties, And Obligations Of Beneficiaries And Trustees During litigation

During trust litigation, beneficiaries and trustees have certain rights, duties, and obligations. 

Beneficiaries have the right to information about the trust and its administration.

They also have the right to challenge the trustee's actions and the right to receive distributions from the trust. 

Trustees must administer the trust in good faith and under its terms. 

They must provide beneficiaries with information about the trust. 

They also must avoid conflicts of interest and self-deal.

About The Author

Clea Smith is a USA-based author on Legal issues related to estate planning, will & trust, business law, and elder law. Clea Smith does her best writing on these topics that help users to find the best solutions to their FAQ on estate planning attorney, probate, living trust vs will, and more about legal family issues.