What is a revocable living trust?
A revocable living trust is an estate planning tool that allows a person (the grantor) to transfer ownership of their assets to a trustor while maintaining control of those assets during their lifetime. The trustor, or trustee, will manage the assets for the benefit of the grantor, and upon the grantor’s death, the assets will be distributed according to the trustor’s directions. In Hawaii, a revocable living trust is an attractive estate planning tool because of its flexibility and the easy transfer of assets that it allows. The grantor has the ability to modify or revoke the trust at any time, unlike a will, which is irrevocable. A revocable living trust also avoids the costly and time-consuming probate process associated with transferring assets upon death. In addition, the trustor can manage the assets discreetly and without the need for court oversight. Finally, a revocable living trust provides the grantor with the ability to control asset distribution both during their lifetime as well as upon their death. For example, the grantor can designate assets for specific beneficiaries, specify how those assets should be managed, and control the timing of distributions. This level of control allows the grantor to ensure their assets are distributed according to their wishes.
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