Transfer assets in and out of the trust.The revocable living trust lets you retain control over your assets even though it's the trust that owns them.Īs the grantor of a revocable living trust, you can: However, the term "revocable" includes more than just the ability to terminate the trust. Revocable Living TrustsĪs its name indicates, the revocable living trust is one that you can revoke, or cancel, at any time. If you've also designated another trustee who will step in if anything happens to the first trustee, this second trustee is known as the successor trustee. The people to whom the assets of the trust will be distributed on your death are known as the beneficiaries.Īnd finally, the person in charge of administering the trust and distributing the assets is called the trustee. The creator of a trust is called the grantor or the settlor. Trust TerminologyĬertain terms are common to all trusts that you should become familiar with. It's only after your death that the trust itself is created. While you do include all the details about the trust in your will, the testamentary trust isn't established when you execute your will. The purpose of a living trust is to hold your assets while you're alive and distribute them according to your wishes at your death.Ĭontrast this with the testamentary trust, which isn't created until your death. To decide which type of living trust will work best for your particular circumstances, it's important to understand the differences between them.Ī living trust is a trust that you create during your lifetime. There are two kinds of living trusts-revocable and irrevocable. Living trusts are popular tools in the estate planning process.
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