Christy Bieber has a JD from UCLA School of Law and began her career as a college instructor and textbook author. She has been writing full time for over a decade with a focus on making financial and legal topics understandable and fun. Her work has.
Christy Bieber, J.D. ContributorChristy Bieber has a JD from UCLA School of Law and began her career as a college instructor and textbook author. She has been writing full time for over a decade with a focus on making financial and legal topics understandable and fun. Her work has.
Written By Christy Bieber, J.D. ContributorChristy Bieber has a JD from UCLA School of Law and began her career as a college instructor and textbook author. She has been writing full time for over a decade with a focus on making financial and legal topics understandable and fun. Her work has.
Christy Bieber, J.D. ContributorChristy Bieber has a JD from UCLA School of Law and began her career as a college instructor and textbook author. She has been writing full time for over a decade with a focus on making financial and legal topics understandable and fun. Her work has.
Contributor Jeffrey Johnson, J.D. Deputy Legal EditorJeffrey Johnson has written novels and movies in addition to legal analyses of eminent domain and immigration law. His experience in writing engaging fiction makes him uniquely capable of making the most dry and academic legal topics interesting (or.
Jeffrey Johnson, J.D. Deputy Legal EditorJeffrey Johnson has written novels and movies in addition to legal analyses of eminent domain and immigration law. His experience in writing engaging fiction makes him uniquely capable of making the most dry and academic legal topics interesting (or.
Jeffrey Johnson, J.D. Deputy Legal EditorJeffrey Johnson has written novels and movies in addition to legal analyses of eminent domain and immigration law. His experience in writing engaging fiction makes him uniquely capable of making the most dry and academic legal topics interesting (or.
Jeffrey Johnson, J.D. Deputy Legal EditorJeffrey Johnson has written novels and movies in addition to legal analyses of eminent domain and immigration law. His experience in writing engaging fiction makes him uniquely capable of making the most dry and academic legal topics interesting (or.
Updated: Apr 8, 2024, 2:34am
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
Getty
A trust is a legal arrangement that allows you to separate who owns a given asset from who controls it and who uses it.
You can create a trust and transfer assets into it so the trust becomes the new legal owner. You can name a trustee to manage the assets, and the trustee could be yourself or someone else. You can also designate beneficiaries who the trust assets are to be used for.
Trusts play a very important role in the estate planning process, but there are different types, and you need to know which ones make sense for you to use when planning your legacy. This guide explains all that you need to know.
Revocable trusts are made during your lifetime so they are also called “inter vivos trusts” or “living trusts.” Usually, you initially name yourself as the trustee so you can keep managing any of the assets you put into it.
When you create your revocable trust, you should name a successor trustee. This successor will assume responsibility for managing assets if you become incapacitated or die. When you pass away, the successor trustee facilitates the transfer of assets to your chosen beneficiaries according to your instructions.
Assets held in a revocable trust transfer outside of the probate process that’s normally required when you pass away. Because it involves court filings, it means that information about the disposition of your estate can also be available to the public. Many people use revocable trusts specifically to avoid probate. It is important to note that assets can still be subject to estate taxes even if they are held in a revocable trust and transferred outside of this process.
Since the trust creator still has control over assets in the trust while they are alive, this type of trust also doesn’t provide strong protection against creditor claims.
Was this article helpful?
