Revocable Living Trusts
Trusts can be created for a variety of reasons including achieving estate planning. When a trust is created, the person who establishes the trust is called the Maker or Grantor. The trust which is created is a separate legal entity from the Grantor.
Once the trust document is created, the Grantor will transfer ownership of some or all of his property into the Trust.
In the estate planning arena, the Revocable Living Trust is frequently established to avoid the probate process. A Revocable Trust can be revoked at any time by the Grantor. Assets or property transferred to the trust are not part of the Grantor’s probate estate at his death and are not subject to the probate process.
The Revocable Living Trust can also be used to help plan for the disability of the Grantor. The Grantor of the Trust can select a trusted person who will have the authority to take care of the Grantor’s financial affairs in the same way the Agent under the Power of Attorney would do. The Grantor can establish the conditions under which the Agent would be able to act. The Grantor can select successor agents in the event the primary agent is not available. It is important that the selection of an Agent under the Trust be coordinated with the selection of the Agent under a Power of Attorney.
Family Members who have been providing care or support for a child or other loved one want to know how that care will be provided when they are no longer able to provide it. Often the loved one is receiving public benefits such as Supplemental Security Income (SSI) or Medicaid which benefit eligibility could be lost if money is given directly to the loved one. A Special Needs Trust permits your loved one’s public benefits to continue while contributions to the Special Needs Trust provide for his other or special needs.