If you’re researching the revocable living trust, you may be confused about some of the terms. It’s important to make sure that you understand all aspects of this estate planning tool so that you can properly use it in your plan. Take a look at the information below to learn more. If you have any questions, or if you’d like to discuss creating a revocable living trust, meet with an experienced, qualifief estate planning attorney.
Trust document – Your trust document spells out all of your trust’s instructions. This includes all of the terms associated with your trust and how you want your affairs to be handled. Think of the trust document as an instruction book.
Grantor, Trustor, Settlor, Trust Maker – All of these terms mean the same thing. This is the person who sets up the trust. If you choose to set up a trust with another individual such as your spouse, you are referred to as grantors, trustors, settlers, or trust makers.
Trustee – This individual has power over the trust and is in charge of managing the trust. The trustee holds title to trust assets.
Trust property, trust principal, trust estate – These terms refer to the property that is transferred to the trustee when creating a revocable living trust.
Successor trustee- This is the person who you name to take over the responsibilities of the trust when you are disabled and after your death. The successor trustee will be responsible for handling your trust affairs, following the trust instructions.
Beneficiaries – These are the individuals who you name to receive your assets after your death. The beneficiaries of your trust will receive your assets after your successor trustee begins to take control over your trust’s responsibilities.
Make sure that you understand the uses of a revocable living trust before executing this estate planning document. If you have any questions, or if you’d like to discuss the creation of a revocable living trust, consult with a qualified, experienced estate planning attorney.