People are sometimes confused by the term “Revocable Living Trust.” Unscrupulous companies and websites often take advantage of this confusion as a way to get people to purchase a Revocable Living Trust form from them. These companies and websites make people think that there is something magical about a Revocable Living Trust. However, to understand whether you need a Revocable Living Trust, you need to understand what is truly meant by the term.
The words themselves are not magical and they do not create a magical legal document that is perfect for everyone. First, a Trust is a legal entity that holds property and assets for the benefit of someone or something else. The property is held in “trust.” Revocable and living merely mean that the Trust is created while you are living and that you have the right to revoke the Trust and retain the assets that you put into it. For many people, this is an excellent estate planning method as any assets put into the Trust while you are alive do not have to go through Probate after you pass away. However, some people should use different legal methods in their estate plans, often for tax reasons.
To know whether a Revocable Living Trust is right for you, talk to an experienced estate planning attorney.