One of the main reasons why one will form a revocable living trust is to avoid a probate. Making a trust is not all that complicated to accomplish as many people tend to fear. And once it is done, you can rest knowing that your estate as well as your beneficiaries will not be bogged down into a probate which will be a court supervised process once you have passed on. It will give you peace of mind knowing that all of your personal affairs will be kept private as they have always been. This is because your last will becomes a public matter once it is submitted for a probate. Since you don’t want that, then revocable Living Trust is a good choice;
To create this revocable living trust, then you will need to write a trust agreement. There are three primary parties which are involved in this agreement. These are the trust-maker who is also known as settlor or grantor; the trustee as well as the beneficiary. As the name suggests, the trust-maker is that person who make and fund the trust. The beneficiary on the other hand is one who will benefit from the trust. The manager of the trust and its properties is the trustee. When you come up with a typical revocable trust, then all of the three persons above will typically become one person hence simplifying the process.
Once the trust agreement has been drafted and signed, then the trust-maker will start to fund the trust. This means that they will start transferring all of their assets into the ownership of the trust. Normally, he will designate the trust as the beneficiary his retirement accounts as well as the life insurance account and the annuities. The real estate is in most cases held in trust. As a trustee, the trust-maker will be the one who manages, invests and spends the property owned by the trust for their own benefit. If others have been named as the beneficiaries, then they also get to benefit from the trust if they have been named to inherit after his death. If you want to learn more about Estate Planning, take a look at this URL.
Once the assets have been funded into the trust’s name, then it means the trust-maker will not own property in their individual names. Normally, the property will be owned by the trustee for the benefit of the beneficiary (himself) or other later beneficiaries. Since he doesn’t own this property but rather the trust does, then the probate will not be required to transfer the ownership to other individuals in the event that he dies. The trust lives on as a separate entity even after the person has died.