The value of the trust assets at the time of the grantor’s death is necessary for determining the value of theirestate, discussed next. Pay expenses, debts, and taxes Settling a trust can take time, so it’s likely the trust will incur expenses that need to be paid. The trustee must...
If the grantor of the revocable trust requires that the trustee continue to administer the trust after her death, the trustee continues to have an unconditional obligation to protect and control trust assets. However, the duty to protect trust assets only requires that the trustee act reasonably. ...
The living trust that is generally preferred is a revocable living trust (sometimes referred to as a revocable inter vivos trust or a grantor trust). Such a trust may be amended or revoked at any time by the person or persons who created it (commonly known as the trustor(s), grantor(s...
A revocable living trust is an instrument created for the purpose of protecting your assets during your lifetime. It also creates an avenue to pass your assets with ease after your death. But what assets can go into a trust, and what should you not put in a living trust? One of the ...
If you’re in the early stages of estate planning, one of the tools you may have come across in your research or initial discussions with a financial planner is a revocable trust. These legal entities can go a long way in protecting properties, money and other investments that you want to...
A living trust is one that goes into effect during the grantor's lifetime, while a testamentary trust goes into effect at their death. Testamentary trusts are always irrevocable, and all trusts are irrevocable after the grantor dies. A living trust, on the other hand, can be either ...
Funding the Trust The trust will be funded by transferring the grantor’s assets to the trust after the grantors sign the joint revocable living trust. This means that the assets become owned by the trust instead of the grantors. However, since the grantors are also the initial trustees, ...
If you establish an irrevocable trust, you can’t be one of the trustees. They offer less privacy, as documentation might be part of a potential legal proceeding following a grantor’s death. Key differences between a revocable vs. irrevocable trust As you might expect, the biggest difference...
revocabletrustis a trust whereby provisions can be altered or canceled depending on the wishes of thegrantoror the originator of the trust. During the life of the trust, income earned is distributed to the grantor, and only after death does property transfer to thebeneficiaries of the trust. ...
The same isn't true for trusts, which is one of the key benefits of a revocable trust. A trust is considered a separate legal entity for the purpose of managing and distributing assets according to thegrantor'swishes.2 The assets named in a revocable trust do not pass through the probate...