Revocable Trusts

A revocable trust is a flexible estate planning document that can act as a will substitute for assets that are properly transferred into the trust during lifetime. In many cases, clients use a revocable trust to provide more structure, more privacy, and a smoother transition after death or incapacity than a will alone may provide.

The person creating the trust usually serves as the initial Trustee during lifetime and continues to control the assets placed in the trust. The document also names a successor Trustee who can step in later if needed and carry out the terms of the trust after death.

Why People Consider a Revocable Trust

A revocable trust may be helpful when a person wants to:

• simplify the transfer of assets at death
• avoid unnecessary probate for assets titled in the trust
• provide a clear plan for management if incapacity becomes an issue
• structure distributions for children, grandchildren, or other beneficiaries
• keep administration more private than a probate filing would be

That does not mean a revocable trust replaces every other document. In most instances, a person with a trust will still have a will as part of the plan, along with powers of attorney and an advance directive.

A Trust Only Works If the Whole Plan Is Coordinated

One of the most common misunderstandings is that signing the trust alone finishes the job. In reality, the trust works best when assets are reviewed, deeds or beneficiary designations are coordinated where appropriate, and the related planning documents are kept current.

That is one reason estate planning is often less about any one document in isolation and more about whether the pieces work together sensibly for the family involved.