When you hear the word “trust,” you may assume that it implies a sense of permanence. This can be intimidating, but all trusts are not created equal. There is a type of trust called a revocable living trust that gives you a great deal of flexibility, and these trusts can provide value for a wide range of people.
A revocable living trust is a very versatile estate planning document, and this versatility is part of the appeal. Once you convey assets into the trust, things are not set in stone.
When you look at the name of the device, you can see that it is revocable, so you do in fact have the power of revocation. As the trust creator you can dissolve the trust at any time, and you can take back direct personal possession of assets that you conveyed into it.
We should also point out the fact that the creator of the trust can act as the trustee and the beneficiary at first, so you don’t have to dissolve the trust to control the assets. You have control all along.
When you create the trust, you construct a trust declaration. You name a successor trustee to assume the role after your passing, and you also name successor beneficiaries.
You can change the trustee, add a trustee, and add or subtract beneficiaries.
Adding Property to a Living Trust
When it comes to adding property to your trust, if you acquire property after the trust has been created, you can in fact convey it into the trust. You do not have to completely restructure the trust to place new property into it.
It may also be possible to have the trust purchase the property in the first place.
Should you place property that you acquire into your living trust? The answer to this question would depend upon the circumstances. In general, if there is a very good chance that you will still have the property at the time of your passing, you would probably want to convey it into the trust.
Another thing to take into consideration is the fact that you should have a pour-over will in addition to your trust. This will would allow the trust to capture assets that were in your personal possession at the time of your passing.
Learn More About Living Trusts
To learn more about living trusts, download our special report. This report is free, and you can get your copy here: Free Report on Revocable Living Trusts.
One on One Consultation
Our firm can help if you would like to take direct action. We provide free consultations, and we would be glad to assist you.
To schedule an appointment, send us a message through our contact page: Indianapolis IN Estate Planning Attorneys.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.