There are several types of Trusts under the law (Charitable, Education, Special Needs, Family, etc.), all with their own financial benefits/disadvantages, tax implications, rules of management (Administration), and fiduciary obligations. Broadly speaking, a Trust is a legal document that allows the parties involved to conduct legal transactions without being supervised by a court of law. Please Note: Trusts can still be subject to court supervision, but only if one of the parties to the Trust brings it to court to settle an issue or resolve a conflict.
What does Revocable Trust mean?
"Revocable" means that the settlor (the person who created the trust) reserves the right to terminate the trust during his/her lifetime, thereby recovering the trust property and any undistributed income. Revocable Trusts are treated as "pass through" structures by tax authorities for income tax purposes, and for preserving eligibility of property tax privileges that are only available to homeowners. The primary purpose of a Revocable Trust is to avoid probate by passing property directly to your beneficiaries (heirs); however, it can also assist with caring for an elderly or disabled person by enabling someone else to pay that person’s bills.
Comparatively, an Irrevocable Trust cannot be terminated by the settlor once it is created. It also cannot be amended or revoked by anyone, including the settlor, without court action.
Living trusts are coordinated with Pour Over Wills to tie up any loose ends. The purpose of this type of Will is to catch anything that might have been left out of the Trust (either accidentally or on purpose) and transfer it into the Trust upon your death. If you have minor children, the Pour Over Will also names their guardians.
Living Trust Package
Includes a Revocable Trust, Pour Over Will, Durable Power of Attorney, Advance Health Care Directive, Grant Deed (for funding the Trust), and Certification of Trust. Packages are available for both individuals and couples.