• 13
  • September
    2010

Florida estate planning lawyers know that many people worry about how their beneficiaries will manage an inheritance. Many people have children who are poor money managers. A revocable living trust is one way to exercise some control over your money, both now and after you are gone. The revocable living trust can be a substitute for a will by providing for the distribution of your assets after your death. This can mean a faster and less costly transfer of assets than a will, which always goes through probate.

With a revocable living trust, you transfer ownership of your property into a trust over time.

  • Trust Assets - money or property you transfer to the trust
  • Grantor - the creator of the trust
  • Trustee - the person or entity that manages and distributes the trust property according to the trust documents
  • Beneficiaries - the people/organizations who receive the benefits of the trust

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If you have a will, it only has an effect after you die. A living trust can start benefiting you while you are still alive. Because the trust is revocable, you can change it as long as you live, to fit changes that may occur in your situation.

To establish the trust, a written agreement or declaration appoints a trustee to manage and administer the property of the grantor. The trust is like a rulebook for how your assets are to be handled when you die. As the grantor, or creator of the trust, you can name any competent adult as your trustee; some people prefer to choose a bank or a trust company to fill this role.

Advantages of a revocable living trust:

  • In most cases, avoid probate
  • You can change the terms at any time, as long as you live
  • Keeps your asset transfers private
  • It is easier to avoid challenges to the trust than challenges to a will
  • Your assets can continue to grow
  • Estate tax advantages - discuss these with a Florida estate planning attorney

Source: Investopedia "Establishing A Revocable Living Trust"