Estate Planning is all about assurance. What estate planning is all about is finding the right devic...

1. What is a Revocable Trust?
Estate Planning is all about assurance. What estate planning is all about is finding the right devices
to implement your basic needs. What that indicates is that we utilize the most innovative legal
documents to appropriately implement your desires. We customize each and every plan so that you
get precisely what you want. We do this using the most up to date devices so that we can prepare a
personalized plan at the lowest possible cost. Kindly call us today with any questions.
We all worry about how we can help our family members to lead a comfortable life, even after we
are no more. Another big issue that worries us is the status of our assets and savings. A revocable
trust helps solve a lot of these
http://www.freewebsite-service.com/incandescentbla9/blog.php?id=582374&snavn=Blog+post
concerns by providing the owner of the trust with some practical and useful rights over his estate,
its management, and division among his beneficiaries.
Understanding a Trust
A trust is a contractual agreement between two parties for the simple purpose of estate planning
and management of the estate/assets of the person wanting to create the trust. The person wishing
to create the trust, is known as the 'Donor' or the 'grantor'. The 'trustee' is the person in whose
name the trust has been left, by the grantor. The grantor makes the trust for his beneficiaries who
could be his heirs, friends, or even an organization such as a charitable trust. In legal terms, the
receivers of the trust are often called 'trust's beneficiaries'.
Two Basic Types of Trust
Living Trust or 'Inter-vivos': This trust is made during the grantor's lifetime.
Testamentary Trust:
The 'will', left behind by the deceased grantor. The beneficiaries can exercise their right over the
'will' only after the death of the grantor and not before.
A living trust is further divided into two
types:
Revocable Trust
The grantor makes a revocable trust within his lifetime, according to which only the grantor has
complete control over his trust assets while he is alive. He has the right to completely
revoke/terminate his trust or make amendments/changes to the terms or clauses of his trust
agreement. Such a trust is liable for payment of taxes as it is considered a part or inclusive of the
grantor's personal assets. Also, a revocable trust can be converted into an irrevocable trust if the

2. grantor wishes to do so. The grantor can act as the trustee as well, thereby, giving himself more
control over his estate and assets.
This trust is often used in place of a 'will'. While comparing between a revocable living trust vs. will,
a trust is much better because, unlike a will, it helps in avoiding probate and the court approval
needed to transfer the grantor's assets to the beneficiaries.The transfer of assets after the grantor's
death is much faster and less expensive compared to a 'will'. A 'last will and testament' are a series
of instructions that are left behind by the deceased, on how to distribute his property after his death.
While a trust allows the grantor to create fiduciary rights for the trustee, who is assigned with the
duty to divide the grantor's assets among his beneficiaries.
It is important that you understand the difference between an revocable and irrevocable trust, which
will help clarifying any confusion.
Irrevocable Trust
Once the grantor makes this trust for his assets, he cannot revoke, terminate, or change the terms of
the trust agreement without the specific consent of his trust's beneficiaries. The only advantage to
the grantor is that if there are any additions or increments to his assets, those appreciations will
belong to him alone and will not become a part of the trust created by him. Those increments in
assets will be considered separate from his private assets and property, on which he alone will have
the right to use and enjoy.
Benefits of a Revocable Trust
Eliminates Probate: A probate is the court procedures to transfer the deceased grantor's trust to the
beneficiaries. This is a lengthy process and takes at least a year to finalize. A revocable trust
eliminates probate completely, because this trust is considered to be a part of the grantor's private
property for which tax is regularly paid. The grantor has private ownership over his trust's various
assets, debts, taxes and the distribution ratio of the complete assets among each and all of his
beneficiaries. Therefore, since this trusts does not fall under the public domain, it is exempted from
court and attorney fees, and verification.
Financial Management of Trust Property: The grantor may
take the role and functions of the trustee as well, he has the right to look after the financial
transactions of his estate on a daily basis. In case the grantor does not wish to continue with this
management, he can transfer this right to the actual trustee or successor trustee. Since the
management of the trust is being handled while the grantor is still alive, he will need to pay a fee to
the trustee for his services.
Property Management: It is the trustee's or successor trustee's
responsibility to look after the trust if the grantor is incapable of looking after his property due to
illness, old age, or disability. Such a trust provides great comfort to people who cannot personally
look after their assets any longer, because the duty can be delegated to another person via a legal
agreement and mutual consent.
Security for Your Children: A revocable trust is preferred by many
parents who wish to financially protect their children in case of the sudden death of any of one of the
parents or both. Death being an unforeseen eventuality, this type of trust helps secure the assets of
the parents until the children are 18 years and older. You can appoint a guardian for your children
and even leave your spouses as the beneficiary of the living trust along with your minor children.
How to Set Up a Revocable Trust
A revocable trust is established through a written agreement by the grantor. Such an agreement
declares the appointment of a 'trustee' and 'successor trustee' for the management and distribution
of the grantor's estate in a fixed ratio, among his legal heirs and other beneficiaries on his death.
The type of trust must essentially be like a book of rules that must be complied with. The trustee can

3. be any consenting adult, a federal charted bank, or a trust company that specializes in this field. An
individual trustee will be required to open a revocable trust account in favor of the grantor, provide
the bank all necessary details about the grantor as well as the trustee.
Process of Funding
Funding a trust means to transfer assets into that trust. A revocable trust is beneficial against
probate only if all the family assets are already a part of the trust. The family assets must be
transferred into the trust before the grantor's death. If any of the assets have not been transferred
then they will be liable for probate and cannot be managed by the trustee. A trust can be jointly
owned between spouses as well.
The advantages of a revocable trust are manifold. However, it has some disadvantages as well, such
as no tax exemptions, no escape from creditors or debts, charges for setting up, and payment of
annual trustee's fee. That being said, the benefits exceed the drawbacks by leaps and bounds.
http://www.buzzle.com/articles/what-is-a-revocable-trust.html
Estate Planning is the process of establishing that obtains your possessions, when they obtain those
properties, as well as who takes care of you when you are aged. Plus, your estate plan determines
which could take care of your children.
The basic structure block of any kind of estate strategy is a Will. This document is recognized much
and wide as a record that is prepared by an attorney and also executed by two or more witnesses
then notarized.
Some individuals utilize a Revocable Trust rather of a Last Will and Testament. The Living Trust can
do all the exact same points as a Will, however it does not need to go through the probate process to
be effective. In addition, a Revocable Living Trust is lots of times used for tax preparation and also
philanthropic preparation.