Santa Clarita Living Trust Attorneys and Los Angeles Estate Planning and Living Trusts Attorney Robert Mansour

Revocable Living Trusts

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A "revocable" living trust may be amended or revoked by the person creating it (commonly known as a "trustor," "grantor" or "settlor"), at any time during the settlor's lifetime, generally as long as the settlor is competent. The most common type of living trust for most people is the "revocable" living trust. Therefore, oftentimes the term "living trust" generically refers to the "revocable living trust." Sometimes it is also called a "living trust agreement."

A trust is a written legal agreement between the individual creating the trust and the person or institution named to manage the assets held in the trust (the "trustee.") For a married couple, it is an agreement between the husband and wife (as Settlors and Trustees). In many cases, it is appropriate for you to be the initial trustee of your living trust, until management assistance is anticipated or required. Most people are the trustees of their own trusts until they can no longer handle their own affairs or they pass away.

I often tell people that a living trust is like a circle. Anything "inside" the circle is subject to the rules of the trust (those outlining what happens to your assets etc). Second, anything "inside" the circle avoids the court system. Third, assets "inside" the living trust are not subject to public inquiry - everything remains private within the family. Finally, assets inside the trust can be managed for you without court interference by your named successor trustees.

In a Revocable Living Trust:

The trustee is given the legal right to manage and control the assets held in the trust.
The trust provides for the persons or charitable organizations ("beneficiaries") who are to receive the income and principal on or after the trustor's death.
The trustee is given guidance and certain powers and authority to manage and distribute the trust property in a prudent fashion. The trustee is a "fiduciary." A fiduciary is one who occupies a position of trust and confidence and is subject to strict responsibilities, usually higher standards of performance than one who is dealing with his or her own property. Without the settlor's express written permission, the trustee cannot use trust property for the trustee's own personal use, benefit or self-interest. One must hold the trust property solely for the benefit of the beneficiaries of the trust.
Avoids probate and the court system if funded properly.