A Revocable Trust allows the person creating it to alter, amend or terminate the Trust and take back the assets funded in the Trust. The person creating the Trust has full control of their assets during their lifetime, with provision for what is to occur upon their death.
A Revocable Trust is an estate planning option that manages and protects the assets of the individual (grantor) during their lifetime. The Revocable Trust can be amended or revoked as the grantor desires and is included in estate taxes. The Revocable Trust lays out the guidelines of operation for the Trust, what powers the trustee has or does not have, what the beneficiaries are to receive, and how the beneficiaries are to receive the trust property. If properly funded, the Revocable Trust bypasses and avoids probate, remains private and becomes irrevocable upon the grantor’s death. It also provides you with the ability to customize a plan specific to your circumstances and wishes regarding your legacy.
The money or property held by the trustee for the benefit of someone else is called the principal of the Revocable Trust. The person or people benefiting from the Revocable Trust are the beneficiaries. The value of the principal can change due to the trustee’s expenses or the investment’s appreciation or depreciation in the financial markets. The collective assets comprise the trust fund, which may consist of the following: