A Revocable Living Trust is a legal document that allows a person to maintain control of his or her assets during their lifetime and then pass them on to children or other loved ones but AVOID the time and expense of Probate. The person creating the trust is called a “Settlor” or “Grantor” and is usually the initial “Trustee” (the person who manages the assets in the trust) as well. The Settlor may also name others persons as “Successor Trustees” to manage the assets should the Settlor become incapacitated. Co-Trustees may be named if the Settlor so wishes or in successive order. The Settlor may also amend (make changes) to the trust at any time as long as they are not incapacitated. Once the Settlor is deemed incapacitated or dies, the trust becomes irrevocable (no changes can be made). An exception to this rule exists. If there are two Settlors (the trust is created by a married couple), a surviving Settlor can make limited changes to the trust.
Tags: Revocable Living Trusts