A revocable trust is better known as a revocable living trust or a grantor living trust. Established during a person’s lifetime, a revocable trust is in effect as long as the grantor is living. Its purpose is to transfer the grantor’s property to someone who holds the property for the benefit of the grantor. This type of trust is revocable or reversible at anytime during the grantor’s life as long as the grantor is mentally capable. When the grantor dies, the trust becomes irrevocable.

To be a revocable living trust, the trust must have a grantor who is competent and intends to create a trust. It also needs a trustee, or person who accepts legal title to any property placed in the trust. The trustee also manages and distributes the property in accordance with the terms of the trust. Finally, it needs a beneficiary, or person who has title to the trust property and receives a direct or indirect benefit from the property through distributions of income, principle or a combination of the two. Use a revocable trust to:

1. Avoid probate at the death of the grantor.

2. Manage the assets of the revocable trust outside of probate during periods of incapacity.

3. Minimize estate administration costs such as inventory, accounting, appraisals and legal fees.

4. Consolidate management and distribution of trust assets and avoiding ancillary estate administration for assets (especially real estate) held in other states.

Action Steps
The best contacts and resources to help you get it done

Find revocable trust information from specialists in revocable trusts to avoid probate court

Probate court takes time and money and a revocable living trust allows the surviving spouse or co trustee to avoid probate entirely. Revocable trusts are the cornerstone for people with non-taxable estates, so they save families both time and money during difficult times. Finding the right revocable trust advice from an attorney that specializes in revocable living trusts makes avoiding probate easy.

I recommend: Use Findlaw.com by keying in the words "Trust and Estate" in the "Legal Issue" field, then type your location to find trust experts near you. Try Martindale.com by clicking on "Trusts and Estates" for areas of practice and the state in which you live.

Create revocable trust documents with online tools and resources

Revocable living trusts are relatively easy to produce with the right online tools and forms. Do it yourself trust are also a great resource when time is an issue and a trip to the attorneys office isn't possible.

I recommend: Both NUPPLegal and US Legal have revocable trust documents and packages available for do-it-yourself trusts.

Work with a revocable trust expert for savings on estate administration costs

During life's most difficult moments, it's nice to know money isn't a big issue. A revocable trust cuts down on administrative costs by putting the surviving trustees in charge of handling the estate. Get revocable trust management advice from experts in trust work for the most comprehensive plans available.

I recommend: Fiduciary Trust International provides wealth management services as well as trust and estate planning to its clients nationwide. Goodwin Procter has a trust and estate planning division that works in all areas of estate planning and trust work. They have a highly respected national presence.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Execute a trust with the same formalities used to execute a will.
• •  Trusts require a higher level of capacity than that of 'sound mind' applicable to wills. The required capacity is similar to contractual capacity such as that needed to sign a deed.
• •  Notarize a revocable trust in case it needs recording with the Register of Deeds.