Revocable Living Trusts

A Powerful Estate Planning Tool

A Revocable Living Trust lets you control how your assets are managed during your lifetime and distributed after your death—without probate.

You typically serve as the trustee while you're able, and name someone to take over if you become incapacitated or pass away. A Trust must also have at least one beneficiary—and during your lifetime, you are the sole beneficiary.

You can name anyone you wish to receive the Trust property after your death and decide when and how those beneficiaries will receive their inheritance. Because the Trust is revocable, you may amend or revoke it at any time.

To make your Trust effective, your assets must be transferred into it—a process called funding. There’s no one-size-fits-all Trust, and we’ll tailor yours to your assets, family, and goals.

Advantages Of Having A Revocable Trust

• Avoids probate, saving time, costs, and stress
• Keeps your affairs private
• Offers asset protection for your beneficiaries
• May reduce income and estate taxes
• Ensures someone you trust can manage your affairs if you’re unable

Disadvantages Of Having A Revocable Trust

• Higher upfront planning cost
• More work upfront to fund the Trust

The Grantor

Any adult can create a Trust—individually or as a couple. Whether to create one joint Trust or separate Trusts depends on your assets and family situation. We help you decide what’s best.

The Trustee

You choose the person or institution who will manage your Trust, and ideally one or more backups. Your options include family members, professionals such as attorneys or accountants, or a bank & trust company. Choosing the right trustee is critical — we’ll guide you based on decades of experience representing trustees who administer trusts for beneficiaries from all walks of life.

You may nominate a single person or institution to serve alone, or two or more people may serve together as co-trustees. You may retain the power to remove a trustee and appoint a new one. Each trustee may be given unique and detailed instructions on how your property will be managed and eventually distributed. How much authority and what limits are placed on the trustee is up to you.

The Beneficiaries

You decide who gets what, when, and how. Distributions can be immediate or delayed, based on age, milestones, or your own guidelines. We’ll help you create practical and meaningful terms that reflect your values.

For example:

• You might require the trustee to pay for college only if the beneficiary is applying themselves diligently or maintaining a certain GPA.
• You may have the trustee distribute a set amount each year for support, or provide support only until the beneficiary becomes financially independent.
• The trustee may be authorized to assist with a reasonable down payment on a first home or cover the cost of a first wedding.
• You can include incentives, such as matching the beneficiary’s earned income with an additional Trust distribution, or offering a bonus distribution upon completing a degree.

There’s no limit to the standards you can include in your Trust, but each provision has different implications for the beneficiary, trustee, and Trust itself.

We have extensive experience working with Trust beneficiaries and can guide you in creating thoughtful and effective terms for your plan.

Funding the Trust

Setting up the Trust is step one. Step two is making sure your assets are properly titled to the Trust. This may include real estate, financial accounts, retirement plans, and life insurance. Funding is critical—and we handle the details to make sure it's done right.

For example:

• Stocks, mutual funds, and other securities should typically be re-titled in the name of your Trust, which may require opening a new account.
• IRAs, 401(k)s, and other retirement accounts must be handled carefully. Married couples usually name each other as primary beneficiaries. If you want the funds managed until younger beneficiaries reach a certain age, consider naming your Trust as the contingent beneficiary — though this can have income tax consequences.
• Real estate is generally titled in the name of your Trust, but this should be done carefully to avoid issues with mortgage lenders or local tax authorities. We often use “Ladybird” deeds to accomplish funding goals with real property, but sometimes other options are more effective.
• Life insurance policies should generally name your Trust as the beneficiary.

Funding your Trust will involve a certain amount of time, patience, diligence, and should always be overseen by a qualified attorney to ensure that the changes made are consistent with your estate planning documents and objectives.

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