Setting Up a Revocable Trust - Article: 1201746 at Isnare.com Free Articles The Top Three Questions on Revocable Trusts With the influx of baby boomers entering their ‘golden years’ over the next decade toms shoes free shipping, there has been a good deal of advertising and information aimed at estate planning and setting up a trust– but what do you know about trusts and how they operate? Why Set up a Trust? Setting up a trust allows you to put conditions on how and when your property will be distributed after your death. Creating a trust also allows you to distribute assets to your beneficiaries without the cost, delay and public records of probate, the legal process that ‘settles’ your estate. The most popular trust is the Living Revocable Trust, also known as a Grantor Trust, which not only distributes your property upon your death, but can manage it in the event you become incapacitated due to health or age related issues. How does a Living Revocable Trust Work? The laws on trusts and estates vary from state to state, but many are based on the Uniform Probate Code, which is the statute that attempts to unify probate law throughout the United States. In general, a Revocable Trust, called such since the terms of the trust may be revoked or amended, operates as follows: A Grantor sets up a Trust to benefit named Beneficiaries of their choosing, in the case of a Living Revocable Trust, the Grantor may also be a Beneficiary. The Grantor transfers an asset or assets, such as a piece of real estate, to the ownership of the Trust, a process known as ‘funding’ the Trust. For example: A home owned by the Grantor would have been titled “Property of John Smith.” After transferring it to the Revocable Trust, the title would simply be changed to “ toms shoes for kids;Property of John Smith Revocable Trust, John Smith, Trustee.” The Grantor names a Trustee to manage the assets. With a Living Trust, the Grantor can also act as the Trustee, and name a Successor Trustee to take over when they pass away or become incapacitated. When the Grantor dies, the property does not go through Probate, since the deceased was not the legal owner, the Revocable Trust is, and the Successor Trustee takes over the trust administration. The Successor Trustee manages the Trust to benefit the named successor Beneficiaries, which can involve selling the property and distributing the proceeds to the Beneficiaries, or an outright transfer of the property to them. Who Needs a Revocable Trust? Typically, large and complex estates were thought to benefit the most from setting up a trust, but many smaller or moderate sized estates can also benefit from a Simple Trust. With a Simple Trust, the Trustee has no active duty beyond transferring the property to the Beneficiary at some future time specified in the terms of the trust, such as the death of the Grantor. This allows the property to avoid probate and transfer more quickly and seamlessly. Make sure you work with a knowledgeable, experience d professional to set up a trust that meets your estate’s specific needs and goals.