Revocable (”Living”) Trust
Revocable Trusts have become increasingly popular with our clients. A Revocable Trust is sometimes referred to as a “Living Trust” because it is most often established while a person (the “Grantor”) is living for his or her own benefit. After the Grantor passes away, the Trust serves as a Will substitute since it essentially contains all of the provisions regarding the disposition of the Grantor’s property that otherwise would have been provided in his or her Will. The primary benefit of the Revocable Trust is that assets retitled into the name of the Trust during the Grantor’s lifetime avoid probate, the process whereby the local court supervises the administration of a person’s estate. Probate primarily entails arranging for the court appointment of an Executor, publishing a creditors’ notice in the local newspaper, and filing an Inventory and Accounts with the local court. Clients generally prefer to avoid probate because it saves probate fees otherwise payable to the court and administrative expenses otherwise incurred to comply with probate filing requirements. In addition, the Revocable Trust, which is not part of the public record, affords more privacy than probate.
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