Revocable Living Trusts
Have emerged as the centerpiece of the client-centered estate plan primarily based upon its flexibility, efficiency and unique ability to coordinate the client’s distribution plan and other wishes. A revocable living trust is utilized as a will substitute. Like a will, the trust names beneficiaries who inherit your property at death. The trust document sets the criteria and conditions by which property is to be held and distributed. Many clients use the Revocable Living Trust to maintain control of assets in the event of incapacity or death, distribute assets in a timely and cost effective manner at death, to avoid probate and maintain family privacy.
While a revocable living trust permits you full control (as Trustee) and have access to all of your assets (as beneficiary), an irrevocable trust, once created, may prohibit your right to control the trust assets. Most irrevocable trusts are created for gifting purposes and for mitigating estate tax liability.