What is a Revocable Trust?
A trust is a relationship where a trustee holds the legal title of assets and agrees to hold those assets for the benefit of the trust beneficiaries. A Revocable Trust (also known as a Living Trust or Inter Vivos Trust) is a trust that can be terminated or changed during the trust creator’s lifetime. The primary uses of a Revocable Trust are to avoid probate, to avoid estate taxes, and to control the distribution of trust assets after the trust creator’s death. Controlling the distribution of your assets after your death becomes especially important if you or your spouse have children from prior marriages. It is also important to protect assets given to family members who are spendthrifts or who are otherwise incapable of responsibly handling their inheritance.
You should consult with an estate planning attorney to determine if a Revocable Trust is right for your particular situation.