Trustee - the person who is in charge of administering the trust, managing the assets, and distributing them in accordance with the trust instructions.īeneficiary - the person(s) or entity that will ultimately receive the asset distributions in accordance with the trust instruction.Ī RLT is basically an agreement between the grantor, the trustee, and the beneficiary that lays out how assets will pass from the current owner to a future owner. Grantor - the creator of the trust and the person who funds the trust with assets.
Next, we can look at the respective players in a RLT: So, a RLT is an estate planning tool that lets you place your assets into a trust while you are alive, make changes to it whenever you like, and then distribute those assets in a controlled and organized manner. Trust - an estate planning mechanism that holds assets and distributes them to specific individuals or entities in accordance with an instruction document that can define when, how, to whom, and for what purpose assets should be distributed. Living - the trust goes into effect while the person who creates the trust is still alive (this is in contrast to a testamentary trust, which only goes into effect upon the creator’s death). Revocable - the trust can be changed or revoked at any time after it has been created (until it becomes irrevocable, which occurs when the creator dies) If you haven’t, or if you don’t quite remember the ins and outs of a RLT, we will go through a quick review before moving on to our main topic of the day: should you place your real estate into a revocable living trust? An Overview: What is a Revocable Living Trust?Ī RLT can be broken down in a few different ways. If you have been reading our blog, you have heard us talk about revocable living trusts (RLTs) before.
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