Many people find a Living Trust to be a preferable alternative to a Will because of three main advantages:ġ. Though a Living Trust is similar to a Will, there are several key differences. The Trustee is responsible for administrating the Trust and making the distributions as described in the Trust Agreement. The distributions can also be the residue, or the remaining assets not given away as specific gifts, such as all of the Grantor's remaining personal property included in the Trust. These distributions can be specific gifts to individual beneficiaries, such as an amount of money to charity or a favorite piece of jewelry to a child. Once the Grantor dies, the Trust designates who will receive the assets from the Trust, similar to a Will. A Revocable Living Trust also allows for the Grantor to amend or revoke the Trust at any time by providing to the Trustee appropriate written amendments or restatements signed by the Grantor.ĭuring the Grantor's lifetime, they will receive payments of the net income of the Trust at pre-determined intervals.
At this time, a new individual, known as the successor Trustee will step in to manage the Trust and make distributions as necessary and appropriate. Most Trusts provide that the Grantor will serve as the initial Trustee to manage the assets of the Trust until the Grantor becomes disabled, would prefer to have another party manage their affairs, or dies. The Trustee can be the Grantor themselves, a bank, or some other third party that the Grantor feels confident will be able to responsibly manage the assets of the Trust. The person in charge of managing the Trust is known as the Trustee. The Trust provides for payment of income to the Grantor and the distribution of the remaining Trust assets once the Grantor dies.
A Living Trust, also known as a Revocable Trust, is an Agreement created by a person, known as the Grantor, to hold some portion of their assets during their lifetime.
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