What does revocable inter vivos trust mean?
Generally, a revocable inter vivos trust (sometimes called a “revocable living trust”) is a written agreement between the individual creating the trust (who is commonly known as a “Settlor,” “Grantor,” or “Trustor”) and the person or institution that is to manage the assets held in trust (commonly known as the “Trustee …
Who is the grantor of a revocable inter vivos trust?
Generally, a revocable inter vivos trust (sometimes called a “revocable living trust”) is a written agreement between the individual creating the trust (who is commonly known as a “Settlor,” “Grantor,” or “Trustor”) and the person or institution that is to manage the assets held in trust…
Who is the trustee of a revocable living trust?
The trust is established to provide that the assets held therein are to be for the lifetime benefit of the Settlor. The Trustee may be either an individual or a bank or trust company. Of course, you can serve as the Initial Trustee of a revocable living trust that you created.
Why are inter vivos trusts important to estate planning?
An inter-vivos trust is an important estate-planning tool because it helps avoid probate, which is the process of distributing the deceased’s assets in court. The probate process can be lengthy …
When does a living trust become an irrevocable trust?
If the trustor creates a living irrevocable trust, the trustor essentially reduces the value of the estate, (since all rights to the assets have been relinquished), and would thus reduce the taxes on the estate. A living trust is typically established as a revocable trust and essentially becomes an irrevocable trust after the death of the trustor.
What are some reasons to have an inter vivos trust?
- You have property of substantial value and wish to avoid the expense and delay inherent in probate proceedings and having a court supervise the distribution of your property following your
- Your property is not owned in joint tenancy with another.
- You own real estate in a state outside the state in which you reside or claim as your domicile.
What is a revocable trust versus irrevocable trust?
A revocable trust and living trust are separate terms that describe the same thing: a trust in which the terms can be changed at any time. An irrevocable trust describes a trust that cannot be modified after it is created without the consent of the beneficiaries. A trust is a separate legal entity a person sets up to manage his assets.
What are the disadvantages of a revocable living trust?
Disadvantages of a Revocable Living Trust. Expenses of planning. A revocable living trust can be a little more complicated than a will to draft, and asset transfers can take time and can result in additional costs. Expenses of administration.
Which is better the will or revocable living trust?
A significant advantage of a revocable living trust over a will is that it can prepare your estate in the event you become mentally incapacitated, not just when you die. Your successor trustee can also step in if you become mentally incompetent to the point where you can no longer handle your own affairs.