A Revocable
Trust is also known as a Living Trust. It is a legal document that is created
by you (or you and your spouse) to manage your assets, such as real property
and investments during your lifetime and distribute the remaining assets after
you pass away.
The person that
creates the Revocable Trust is known as either the “Grantor” or “Settlor”. The
person who is then responsible to manage the trust assets is known as the
“Trustee” or “Successor-Trustee”. There are many options available to who can
serve as Trustee. You can serve as Trustee, you and your spouse can serve as
Co-Trustees, or you could appoint a family member, close friend, bank or Trust
Company to serve as your Trustee. What makes a Revocable Trust “revocable” is
the fact that you may terminate or modify the trust during your lifetime, which
essentially means that you have full control over the trust. There is a caveat
to your full control over the Revocable Trust because your full control
terminates not only at death but at your incapacitation as well.
If you become
incapacitated the Trustee or Successor-Trustee is authorized to continue to
manage your Trust assets and help preserve the estate according to your terms
and wishes. Another benefit is the Revocable Trust may help avoid the need for
a guardian to be court-appointed over your property.
When you pass
away the Trustee or the Successor-Trustee will then step in and pay bills,
claims, taxes and distribute your remaining assets to your beneficiaries, as
described in your private trust agreement. In order for a Revocable Trust to
function as intended it is important to have all necessary assets “funded” into
the Revocable Trust. It is imperative to have a competent and diligent attorney
help you through the entire process. Here in beautiful Naples, Florida our
attorneys at Threlkeld & Cetrangelo, P.A. will make sure that your goals
are met and preserve your legacy!