Overview
A revocable living trust is the foundation of most estate plans. You transfer ownership of your assets to the trust while maintaining complete control during your lifetime. You serve as trustee and can modify or revoke the trust at any time. Upon your death, assets pass directly to beneficiaries without probate.
Best For
- Individuals wanting to avoid probate
- Those seeking privacy in asset transfer
- People with straightforward estate plans
- Anyone wanting to plan for incapacity
Key Features
- ✓ Avoid probate completely
- ✓ Maintain full control while alive
- ✓ Privacy - trusts are not public record
- ✓ Seamless incapacity planning
- ✓ Can be amended anytime
- ✓ Becomes irrevocable at death
- ✓ Spendthrift protection for beneficiaries
📊 Tax Benefits
- ✓ Step-up in basis at death eliminates capital gains
- ✓ Grantor trust status - no separate tax return while alive
- ✓ Tax elections clause for optimal planning
- ✓ GST exemption allocation provisions
Considerations
- Assets must be transferred into the trust
- Does not reduce estate taxes by itself
- Requires ongoing maintenance