What is a Revocable Living Trust?
A revocable living trust is an agreement between a settlor and a trustee. Often a settlor will serve as their own trustee and appoint a person to serve as a successor trustee in the event of the settlor’s incapacity or death. The settlor can revoke or change the trust as long as they have financial capacity to do so. If all of a settlor’s property is included in the trust, there will be no need to probate the settlor’s estate upon the settlor’s death. Avoiding probate can save your estate administration costs and provide a more private way to administer your property. A trust can also provide a way for a trustee to manage the settlor’s finances in the event that a settlor becomes unable to manage their own finances. The incapacity planning function of a trust can help avoid a guardianship or conservatorship in the event of a settlor’s financial incapacity.