What is a Revocable Trust?
This is an agreement with three parties: the Grantor, the Trustee or Trustees, and the Trust Beneficiaries. For example, a husband and wife may name themselves all three parties to create their trust, manage all the assets transferred to the trust, and have full use and enjoyment of all the trust assets as beneficiaries. Further "back-up" trustees can step in under the terms of the trust to manage the assets should the couple become incapacitated or die. Special provisions in the trust also control the management and distribution of assets to heirs in the event of the grantor’s death. With proper planning, the couple also can avoid or eliminate death taxes on their estate. The Revocable Trust may allow them to accomplish all this outside of any court proceeding.