What is a revocable living trust?
A revocable living trust is a legal document created by an individual, sometimes referred to as the grantor, to manage their assets during their lifetime and provide for the distribution of those assets after their death. This type of trust is revocable because the grantor can change or modify the trust during their lifetime. A revocable living trust is established with the guidance of an attorney in Alaska. It is important to note that in Alaska, a valid will and a valid revocable living trust are both acceptable ways to pass on assets. The grantor generally serves as the trustee of the revocable living trust, and has complete control over the trust assets. This means that the grantor can add or withdraw assets, change beneficiaries, or terminate the trust at any time. Furthermore, if the grantor was to become mentally or physically incapacitated, a successor trustee, usually a trusted family member or friend, will step in and take control of the trust’s assets and manage them according to the instructions in the trust. Upon the death of the grantor, the revocable living trust will become irrevocable and ensures that assets are distributed according to the grantor’s wishes. This process can save time and money in comparison to the court-supervised probate process. It is important to remember that if the grantor didn’t take the necessary steps to transfer their assets into the trust, those assets will need to go through probate, regardless if they have a valid will or revocable living trust in Alaska.
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