If you are at all familiar with trusts and estate planning then you have probably heard of a revocable living trust, which is also known as an inter vivos trust. A living trust can be a valuable tool both in life and in death; but, for many people, it is not always clear just how it operates and how it is administered.
What is a revocable living trust?
Basically, it is a set of directions that the creator of the trust gives to the trustee that detail how assets are to be managed while the trust creator is alive, as well as what to do with the assets upon the creator’s death. The trustee is the person responsible for administering the trust after it is created.
How is a living trust administered after death?
As was stated above, a living trust will include directions that detail what gets to be done with the asset to the trust after the creator of the trust dies. The nice thing about one of these trusts is that, unlike the administration of a will, the administration of a trust does not require involvement of the probate court; therefore, distribution of the trust property may be carried out away from the view of the public eye.
What kinds of fees are associated with administering a trust?
The fees for administering a trust may vary, but in the vast majority of cases, the fees will be lower, sometimes much lower, than the probate fees associated with a will. These days, many attorneys are charging clients based on the time and effort expended on their behalf instead of a fee based upon the size of the estate.