Living Revocable Trust: A General Guide
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A living revocable trust is a legal document that authorizes you to transfer the right of your assets to a trust during your lifetime. This type of trust is "revocable" because you can modify or cancel it all while still alive. In addition, a living revocable trust can be a valuable instrument for managing assets and distributing wealth after your demise.
Essential Aspects of a Living Revocable Trust
A living revocable trust, commonly known as inter vivos or revocable living trust, is a lawful document that lets you transfer ownership of your assets to a trust while you are still alive. The trust is controlled by a trustee, who can be yourself, a family member, or a professional trustee such as a trust company or an attorney. In addition, you can name yourself the trustee and continue to oversee your assets during your lifetime. It implies you possess control over your assets and can change the trust as you see fit.
Moreover, to set up a living revocable trust, you must create a trust document outlining the trust terms. The trust document should include information about the assets you are transferring to the trust, the beneficiaries of the trust, and the trustee who will manage the trust. The requirements for creating a trust vary from state to state, but in most states a trust will be valid if you sign the trust document in front of a notary public and have it witnessed by two people. It’s important to consult with an attorney when creating a trust to ensure that it is properly executed according to the laws of your jurisdiction.
Once the trust is established, you must transfer ownership of your assets to the trust. It can include real estate, bank accounts, investments, and personal property. You will need to change the ownership of these assets to the name of the trust, and you may need to re-title some assets, such as real estate, to reflect the trust ownership.
Besides, during your lifetime, you will continue to oversee the assets in the trust as the trustee. You can modify the trust document, add or remove assets from the trust, and distribute principal or income as you see fit. After your death, the trustee will disperse the assets in the trust according to the trust document's provisions. It can include distributing assets to inheritors, making charitable contributions, or holding assets in trust for future years.
Advantages of Setting Up a Living Revocable Trust
Below are some key advantages of setting up a revocable trust.
- Avoiding Probate. One of the principal advantages of a living revocable trust is that it can assist you in avoiding probate. In addition, probate is the legal procedure of distributing your assets after your demise. This method can be expensive, time-consuming, and stressful for your loved ones. By transferring your assets to a trust, you can avoid probate altogether. Moreover, your assets will be distributed according to your wishes, as summarized in your trust, without court involvement when you pass away.
- Safeguarding Your Privacy. Another advantage of a living revocable trust is that it can help protect your privacy. When you die, your will becomes a matter of public record. Anyone can access it and learn about your assets and how they are distributed. With a living revocable trust, your assets are distributed privately without court involvement. It can help protect your family's privacy and prevent them from being targeted by scammers or identity thieves.
- Reducing Estate Taxes. A living revocable trust can also help reduce estate taxes. When you transfer your assets to a trust, they are no longer part of your estate for tax purposes. It means that your estate may be subject to lower taxes, which can help preserve more of your assets for your beneficiaries.
- Maintaining Control of Your Assets. A living revocable trust allows you to keep control of your assets. You can transfer your assets to the trust but still manage them as you see fit. You can buy or sell assets, change the beneficiaries of your trust, and even terminate the trust if you wish. This level of control can be essential if you want to ensure that your assets are distributed according to your wishes.
- Facilitating Charitable Giving. Ultimately, a living revocable trust can facilitate charitable giving. You can use the trust to make charitable donations during your lifetime or after your death. It can be a great way to support causes that are important to you and leave a lasting legacy.
How to Create a Living Revocable Trust
Unlike a will, which becomes effective only after you pass away, a living revocable trust is effective immediately, and you can revoke or change it at any time. Below are the steps involved in creating a living revocable trust.
- Decide If a Living Revocable Trust Is Right for You. The primary step in making a living revocable trust is to decide if it's the right option for you. A living trust can be the right choice if you have substantial assets or want to avoid the probate process. It can also provide privacy and flexibility for your estate planning. Nevertheless, a living trust may be unnecessary if you have a small estate or are satisfied with the probate process. Also, if you have complicated estate planning needs, a living trust may not be adequate to address all your problems.
- Select a Trustee. The trustee is the individual or entity accountable for managing the assets in the trust. You can decide to be the trustee of your living trust or select someone else to serve as the trustee. If you prefer someone else, ensure it's someone you trust with the ability and expertise to handle your assets.
- Determine the Assets You Want to Place in the Trust. To make a living trust, you must transfer ownership of your assets to the trust. It generally includes your investments, real estate, and bank accounts. You'll need to make a trust document summarizing the specific assets you want to include.
- Make the Trust Document. The trust document is a legal document that summarizes the terms of the trust. It includes details about the trust's beneficiaries, trustees, and assets. You can create the trust document yourself or hire an attorney to prepare it.
- Finance the Trust. Once you've made the trust document, you'll need to transfer ownership of the assets to the trust. It generally involves re-titling assets in the name of the trust. For instance, if you have a bank account, you'll need to change the ownership from your name to the name of the trust.
- Edit Your Estate Planning Documents. Creating a living trust may require revising your estate planning documents, such as your power of attorney and will, depending on their terms and your estate planning goals. You'll need to ensure these documents are consistent with the terms of the trust.
- Check and Update the Trust as Needed. A living revocable trust can be modified or revoked at any time. Reviewing the trust is important to ensure it still meets your needs. If you need to make changes, you can amend the trust document.
Key Terms for Living Revocable Trusts
- Trustee: The individual or entity accountable for managing and distributing the trust assets.
- Beneficiary: The person or entity who will receive the trust assets or benefits from the trust.
- Probate: The legal process of distributing a person's assets after death.
- Funding: The process of moving assets into the trust.
- Revocable: A living revocable trust can be changed or terminated by the trustor during their lifetime.
Final Thoughts on Living Revocable Trusts
A living revocable trust is a prevalent estate planning tool that can help people manage their assets during their lifetime and after their demise. By creating trust, people can avoid probate, maintain privacy, and ensure their assets are distributed according to their wishes. A living revocable trust is a flexible tool that can be changed or terminated during the trustor's lifetime, allowing for modifications as circumstances change.
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Meet some of our Living Revocable Trust Lawyers
LeMont J.
LeMont leads a corporate and transactional practice with a focus on delivering practical, business-oriented legal solutions. His practice spans corporate law, commercial transactions, and real estate matters, advising clients through entity formation, governance, contract negotiation, acquisitions, and complex deal structuring. In the corporate and transactional space, LeMont counsels closely held businesses, startups, and growth-stage companies on formation strategy, operating agreements, shareholder arrangements, and day-to-day commercial contracting. He is known for structuring deals in a way that balances legal protection with operational flexibility, ensuring that agreements are both enforceable and commercially workable. His real estate practice includes representing clients in residential and commercial transactions, including purchases, sales, leasing arrangements, and hybrid structures such as rent-to-own and option-to-purchase agreements. He regularly works with clients to navigate deal risk, clarify ownership timelines, and document transactions to minimize future disputes.
"I appreciate his thoroughness and care while working on my prenup review."
Brad T.
William Bradley Thomas, or Brad, is a seasoned attorney in South Carolina, offering expert counsel to both emerging and established businesses and individuals. His specialties encompass alcohol licensure, asset protection, business law, Counsel on Call Concierge Legal Service™, estate planning, NFA firearms trusts, legal research, and document review. Brad’s unique approach is informed by his rich experience and diverse background. Not only is he a devoted father to three daughters (Anna, Kate, and Jessica), but he also served as the assistant Oconee County, South Carolina attorney. A pioneer in the local industry, he co-founded Carolina Bauernhaus Brewery & Winery, the state’s first farmhouse brewery and winery. His other roles have included membership in the South Carolina Bar Association’s House of Delegates, a board member of the South Carolina Brewers Guild, and an affiliate member of the same organization. Moreover, Brad is a certified Design for Six Sigma (DFSS) Green Belt and has accumulated over a decade’s worth of experience conducting onsite audits and financial analyses on domestic and international secured credit transactions, totaling over $5 Billion across diverse industries. With such a comprehensive skill set, Brad can provide sound legal and business advice that can help you manage and expand your business operations effectively. He can assist with selecting and establishing the most appropriate legal entity for your company, securing and retaining federal and South Carolina alcohol licensure, securing company incentives, and drafting, reviewing, and negotiating favorable contracts. All these services are designed to minimize risk and maximize both earnings and tax savings. Brad also offers estate planning services. Recognizing that life’s ups and downs can sometimes distract from ensuring that your loved ones are well taken care of, Brad applies the same legal and business fundamentals to his estate planning practice. These services include the preparation of wills, NFA firearms trusts (gun trusts), power of attorneys, and advance directives. So when your day at the office is over, you can relax, knowing that your business is running smoothly and your family’s future is secure, thanks to a tailored estate plan. If you’re seeking a trusted ally to guide you in business and personal legal matters, contact Brad Thomas at bthomas@scattorneysatlaw.com or review his firms website at www.scattorneysatlaw.com and discover how he can help you confidently navigate and enjoy all aspects of your life!
"Brad was responsive, professional and very helpful. I would definitely recommend him."
Nichelle W.
Nichelle W.
I help business owners, founders, employers, athletes, creators and families get contracts and legal documents done right the first time, at a flat fee agreed before any work starts. I am licensed in Florida (2021) and Washington, D.C. (2022). I practice as a business and contracts attorney and outside general counsel with Amethyst Law Group, and previously served as Florida Managing Attorney at Lento Law Group. Before that I sat on the business side of the table as General Manager and General Counsel of a professional basketball organization and as Deputy Commissioner of a start-up sports league, so I have negotiated, drafted and enforced the same agreements I now prepare and review for clients: sponsorship and vendor deals, player, coaching and staff contracts, employment and independent contractor agreements, licensing and brand deals. What I handle on ContractsCounsel: - Contract drafting, review and redlining: service agreements, MSAs, NDAs, vendor and supplier agreements, sponsorship, licensing, endorsement and brand deals - Business formation and governance: LLCs and corporations, operating agreements, bylaws, partnership and shareholder agreements, founder and equity arrangements - Employment and hiring: offer letters, employment agreements, independent contractor agreements, non-compete and confidentiality agreements, separation and severance agreements, handbooks and policies - Sports, entertainment and creator agreements: athlete representation, NIL, sponsorship, appearance, management and agency agreements (licensed FIBA agent) - Real estate: purchase and sale agreements, residential and commercial leases, contract review before you sign - Wills, trusts, powers of attorney and estate planning documents - Demand letters, cease and desist letters and pre-dispute contract enforcement - Ongoing outside general counsel support for small and growing businesses How I work: Every project starts with a fixed price and a delivery date you can plan around. You receive a plain-English summary of what the document does, what I changed and why, and any risks you should know about, not just a marked-up file. Two rounds of revisions are included so the final draft is exactly what you need, and I respond to messages the same business day. Credentials: J.D., Nova Southeastern University Shepard Broad College of Law, summa cum laude, top 5% of class, Senior Editor of the Southern Journal of Policy and Justice, Dean's Certificate of Professionalism, 300+ pro bono hours; M.S. Forensic Psychology (4.0 GPA); M.S.Ed. Sports Administration, University of Miami; B.A. English Language and Literature, Southern New Hampshire University. Recognized as an Elite Lawyer recipient. Malpractice insurance carried. Litigation background: first-chair trial attorney with experience in business, employment, real estate, consumer protection and family matters. I draft every contract with a clear view of how it will hold up if it is ever tested.
"I had a great experience working with Nichelle! She was knowledgeable, clear, helpful and flexible throughout the process. She was able to work with my timeline and explain legal issues in an easily understandable way. I would recommend her services."
William B.
Attorney based in Southern California (for in-person matters), taking clients globally/remotely for CA-specific and Federal legals needs. Owner and operator of Alchemist Attorney, Inc. (www.alchemistattorney.com).
"William responded quickly and delivered the project documents as promised. He reviewed my documents carefully and made revisions to protect myself in a lease to buy agreement."
Alton H.
Alton H.
I am a U.S.-licensed attorney with more than a decade of experience in complex litigation and intellectual property matters. I have practiced at leading Am Law firms including Pillsbury Winthrop Shaw Pittman, Arent Fox, and Sughrue Mion, and I currently operate my own law practice. I have extensive experience handling high-stakes patent litigation, drafting pleadings and briefs, managing large-scale discovery, preparing and defending depositions, and appearing before federal courts and administrative bodies such as the PTAB and ITC. I hold a J.D., cum laude, from The George Washington University Law School and advanced technical degrees in chemistry and chemical engineering, which allow me to efficiently handle technically complex matters. I am admitted in multiple jurisdictions, including New York, Virginia, New Jersey, and the District of Columbia, and I regularly provide high-quality remote legal support to clients nationwide.
"Alton was responsive and efficient. He was easy to work with and we would work with him again. He does like to keep communication to the website but that worked fine for us."
Ari G.
Ari is a transactional attorney with substantial experience serving clients in regulated industries. He has worked extensively with companies in regulated state cannabis markets on developing governance documents (LLC operating agreements, corporate bylaws, etc...), as well as drafting and negotiating all manner of business and real estate contracts.
January 24, 2023
Jessica F.
I'm a knowledgable and experienced New York licensed attorney with strong contract drafting and negotiation skills, a sophisticated business acumen, and a background working in entertainment and technology law.
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Governing Law Review and Amendment — Revocable Living Trust (Michigan to Georgia)
"Recommended"
Reply From Allen L.
Thank you for the recommendation — it is genuinely appreciated. Helping clients navigate trust language across different governing jurisdictions is exactly the kind of work I find most meaningful, and I am glad the analysis delivered what you needed. Wishing you all the best going forward. Allen
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"Zachariah provided a thorough and well-organized review of our executed living trust. He identified legitimate items worth addressing and was responsive throughout. We had one disagreement on a flagged provision that was resolved quickly and professionally. Would use again for Colorado estate matters."
Revocable Living Trust
"So grateful to Allen L. for the amazing service he gave us: personable & quick response, detailed instructions, expertise in our state's specific laws that set us at ease. We would definitely contract with him again and again should the need arise. Thanks Mr. L!"
Reply From Allen L.
Thank you — it was truly a pleasure working with you. Estate planning is personal work and I am glad the process felt clear and reassuring. I am here whenever you need me. -Allen
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