What is a revocable living trust?

A revocable living trust is a contract made between two parties, known as the trustor and the trustee. The trustee is entrusted with managing and maintaining the assets placed into the trust in the interest of the beneficiary of the trust. The trustee has legal authority over any money, assets, and property placed into the trust. Beneficiaries may receive money or assets from the trust during the trustor’s lifetime or after their death, depending on how the trust is set up. A good trust will include specific instructions on distributing the assets within the trust after the trustor’s death. Many times, the trustor, trustee, and beneficiary are the same person or group of people, such as a married couple, while they are living.

Establishing a revocable living trust is an effective way to control property and assets and how they are distributed after your death. They can also help avoid probate and certain estate taxes.