There’s a common misconception that trusts are only available for the ultra-wealthy, however, a revocable trust is actually available for families from the start of their careers through to retirement. A revocable trust is a trust that may be revoked or amended at any time by the creator of the trust, who is known as the grantor.
How A Revocable Trust Works
During the life of the grantor, the trustee is tasked with managing and overseeing the trust assets. Upon the death of the grantor, the person who created the trust, the trustee will distribute those assets to the beneficiaries of the trust in accordance with the terms that were set out in the document.
In a typical revocable trust structure, the creator of the trust typically performs all of those roles i.e. he or she is the grantor, the trustee, and the beneficiary. The beauty of this kind of trust is that the trust creator stays in control of all of his or her assets and the trust can be amended anytime you change your mind about who should be the trustee or any other kinds of issues.
A More Practical Choice
Revocable trusts are highly utilized estate planning vehicles because they allow heirs to avoid probate courts after you pass away. And you can also avoid conservatorship proceedings if you become incapacitated. When we create revocable trusts for our clients, we analyze the nature of your assets and provide assistance in getting assets transferred to your trust.
The most common reason why trusts fail is that people create documents, but they fail to transfer all of their assets into the trust. That’s why having an estate plan that works is not just about obtaining a set of documents. It’s critical to obtain expert advice about how to transfer assets to the trust and ensure that the trust stays up to date over time.
Contact a San Diego revocable trusts attorney for more information.