What is a revocable living trust?

A revocable living trust is an estate planning tool used in the state of Washington. It allows individuals to manage their estate after death or during periods of incapacity. It allows for the transfer of assets outside of the probate court process and can provide protection from creditors. A revocable living trust is created by an individual and is revocable if the individual chooses to do so. The individual, known as the trustor, must appoint someone to manage the trust, known as the trustee. The trustor also appoints beneficiaries, who will receive the assets of the trust. The trustor has the ability to revoke the trust and make changes to it if they choose. The trustor also has the ability to designate what assets they wish to be placed in the trust and how they are to be distributed among the beneficiaries. Assets can include real estate, investments, and bank accounts. The trust also allows for provisions that provide for the care of minors, disabled individuals, or other dependents as required. Once the trust is established, it is the trustee’s responsibility to manage the assets and distribute them according to the wishes of the trustor. The trustee must also ensure that the trust is valid by filing state and federal tax returns and managing the trust’s assets in a legally responsible way. The trustor must always remain in control of the trust and must always approve any changes or distributions made by the trustee.

Related FAQs

What happens if I move to another state while my estate is still in the process of being settled?
How do I make sure my digital assets are taken care of after my death?
What is a pour-over will and how does it work?
What are the benefits of establishing a family limited partnership?
How do I set up an estate plan?
What is an advance health care directive?
Should I consider creating a trust for my pet?
How do I make sure that my digital assets are taken care of after my death?
What is the difference between a will and a trust?
How should I select executors for my estate?

What is a revocable living trust?

Related FAQs

Related Blog Posts