A living trust gives the trust creator (also known as the settlor or grantor) the opportunity to pass property to his or her heirs without going through the probate process. Because assets placed in a trust are not considered part of the probate estate, creating a revocable living trust may provide significant advantages to dying intestate (without a will) or with a will, which would subject you to the probate process. Avoiding probate can save your estate substantial expenses.

Depending on the size of a person’s estate, a living trust may appoint a corporate trustee or name the trust creator as the individual trustee. To establish an individual living trust, the trust creator signs a document called a declaration of trust, which is similar to a Last Will and Testament. In the document, the trust creator typically names himself or herself as trustee, and transfers assets to that trust (i.e., the transfer is actually made from the trust creator to himself, as Trustee). The trust creator maintains full control over the assets, and retains the power to revoke the trust itself.

At the trust creator’s death, the person identified as successor trustee in the trust document generally becomes the new trustee. The successor trustee transfers ownership of the assets in the trust to the beneficiaries named in the trust document. When all of the property has been transferred to the beneficiaries, the living trust terminates.

The estate planning attorneys of Crumpton Law LLC can help you decide if a revocable living trust would be beneficial to achieving your estate planning goals.