Living Revocable Trust

A Living Revocable Trust is a legal arrangement created during an individual’s lifetime that allows them to manage their assets while retaining control over those assets. It is a type of trust that can be altered or revoked at any time by the person who established it, known as the grantor or settlor.

The primary purpose of a Living Revocable Trust is to facilitate the management and distribution of the grantor’s assets upon their death or incapacitation, while also avoiding the probate process, which can be lengthy and costly. By transferring assets into the trust, the grantor designates a trustee (which can be themselves) to manage the trust during their lifetime and to distribute the assets according to the terms set forth in the trust document after their death.

One of the key benefits of a Living Revocable Trust is that it allows for greater flexibility and control, as the grantor can amend the trust provisions, change the trustee, or even dissolve the trust entirely if circumstances change. This contrasts with an irrevocable trust, where the terms cannot be changed once established.

For example, if a person residing in Houston creates a Living Revocable Trust and places their home, bank accounts, and investments into the trust, they can continue to manage these assets as they see fit. Upon their death, the trust would specify how these assets are to be distributed to their beneficiaries, thereby bypassing the probate process and ensuring a quicker and often more private transfer of assets.

Overall, a Living Revocable Trust serves as an effective estate planning tool that provides flexibility, control, and a streamlined method for asset distribution.