The Stages of a Revocable Living Trust
Revocable living trusts are useful tools for avoiding probate and passing down assets to beneficiaries. There are several stages of operation for these trusts:
Stage one: You, the grantor, are alive
A revocable trust is created from the time you execute the trust. The trust will include information about how you can invest and spend trust assets for your benefit during your lifetime. While the trustee is the legal owner of the assets, you’ll be able to direct the management of those assets as you wish, as the beneficial owner. Or, if you serve as the sole trustee, (the most common case) you can manage the assets directly.
Stage two: Incapacitation of the grantor
The trust includes instructions for what will happen should you, the trust maker, also known as the grantor, become incapacitated and unable to manage your own affairs. This involves naming a successor trustee, who can step in and manage the trust assets for your care should you become incapable of doing so.
Stage three: After the death of the grantor
Upon the death of the grantor, the trust is becomes irrevocable, and therefore, no amendments can be made. The successor trustee will step in at this point, if he or she hasn’t done so already, to manage and distribute trust assets to beneficiaries, pay off the grantor’s debts and carry out the Grantor’s remaining last wishes concerning the grantor’s assets.
For more information about the different stages of a revocable living trust and how you can employ such a tool in your estate plan, contact a skilled Tampa, FL attorney at BaumannKangas Estate Law.