A revocable living trust is a way to transfer assets and ownership of property to beneficiaries. A revocable living trust can have alterations made to it during the lifetime of the person who creates the trust (the grantor). It allows asset owners to transfer their inheritance without having to deal with probate court, which often happens when a will is used.

A revocable living trust goes into effect while the grantor is still alive. It can and often should be altered while a grantor is alive, making it a more flexible option for property transfer. A trustee is appointed to manage and distribute the assets of the trust. Any adult can fulfill the role of trustee as appointed by the grantor, and sometimes an entity such as a bank is chosen to be a trustee.

There are many benefits to arranging a revocable living trust. The main benefit is that probate court is avoided, as probate court can be expensive and troublesome for inheritors. The trust also allows the estate transfer to be a private matter. Probate court can reveal information about an estate’s worth to the public in some circumstances.

There are often familial disputes with a will, and with a revocable living trust many of these disputes can be avoided. A specific beneficiary or beneficiaries are selected to inherit the asset, and others can be exempt in the trust. For married couples, assets can be segregated, such as assets that were acquired by each individual prior to the marriage. Also, if a person leaves children behind who are raised by a guardian, the revocable living trust can manage the guardian’s spending on behalf of the children.

There are some disadvantages to a revocable living trust. The trust must been continuously updated to incorporate future assets and the trust records must be maintained. The title to the asset must also be transferred to the trust, which is a step that can take additional time. Regardless of these few drawbacks, there are still many more benefits to using a revocable living trust as a way to guarantee that your beneficiaries will receive their inheritance without dealing with probate court and disputes.

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