A Living Trust is created during the lifetime of an individual and can be amended or revoked at anytime. Assets (real property, bank accounts, stocks, bonds. brokerage accounts, etc.) are transferred into the trust. While a person is living, the trustee (normally the person making the trust) will be responsible for managing the trust assets.

The individual who establishes the trust is referred to as the grantor or settlor. There can be more than one grantor. The person named in the trust to manage and control the trust assets is called the trustee. Typically, in revocable trusts the grantor will also be the trustee. Successor trustees will be named to step into the role should the original grantor become incapacitated or die.

For a Living Trust to be effective, title to the grantor's assets must be transferred into the trust. This is called "funding" the trust. Title to real estate, bank accounts and stock certificates owned by the grantor must be transferred into the trust. Some beneficiary designated assets (life insurance, retirement accounts) may need to be changed to have the trust named as primary or contingent beneficiary.

We, as estate planning attorneys will advise as to the funding of the trust for each asset and the possible tax consequences, including income and property tax issues. We will also advise regarding beneficiary designations for certain assets.

Upon passing, the terms of the trust will instruct the successor trustee as to the distribution of the trust property. Properly drafted trust documents are essential, and will avoid arguments and possible litigation. The trust documents will also provide for the management of trust assets for minor children.

A properly drafted and funded Living Trust will avoid probate. Probate incurs fees, costs and out of pocket expenses. Also, a trust is private and distributions to beneficiaries can be made without court involvement or public record.

A Living Trust can offset liability to estate taxes. The Living Trust will be drafted to minimize estate taxes resulting in significant savings. Living Trusts are also essential where re-married couples have children from a previous marriage and each spouse wants to create a plan that directs that the children receive their proper inheritance.

We work closely with financial professionals, insurance experts, and accountants to assist clients and their families with the many unique needs and concerns regarding Living Revocable Trusts.