WHAT IS A REVOCABLE LIVING TRUST?
Trusts have a very long and storied history dating back to the medieval days of Europe when barons and landowners would transfer their property in care of a trustee who had responsibility for overseeing the management of the property while they went out on conquests and crusades. The same concept holds true today except of course for the conquests and crusades part.
Today a Grantor the owner of the assets, transfers legal title not ownership to a Trustee,the individual or entity entrusted with the management of the assets and charged with following the terms of the Agreement. The trustee has the duty to provide income and or principal to the named Beneficiary who can be the Grantor or others as provided for in the trust agreement. Depending upon the terms or the purpose of the trust the Grantor has the ability to change, alter, amend or Revoke the terms of the trust as long as he or she has the mental capacity to do so. Hence the term, Revocable Living Trust.
There are enough myths, misconceptions, half-truths and complete falsehoods about Trusts, especially Revocable Trusts, to keep trust professionals busy clarifying things for the rest of their lives. Revocable personal trusts have the following advantages:
When it comes to developing and administering trusts, there are no hard and fast rules. The best plans are developed specifically with your interests, unique situation and tax considerations in mind, and are reviewed regularly to ensure ongoing adequacy.
In addition to the Revocable Living Trust there are a wide range of trust types available for various purposes. Many clients prefer to use a combination of different types of trusts in order to take advantage of all the tax savings and income benefits available to them. Some of the most popular types:
Garden State Trust Company, along with your attorney, can help you determine the most appropriate use of these trusts for your individual or family situation.
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