C—Revocable Living Trust

A revocable trust is a trust wherein the creator or grantor retains the right to alter, amend or revoke the agreement during his lifetime and recover the property for himself. A living trust is simply one which is created to take effect during the lifetime of the grantor, as distinguished from a testamentary trust, which does not become operative until death.

The revocable living trust (RLT) is a will substitute that can accomplish many estate planning objectives. It is an agreement established during the grantor’s lifetime that may be amended or revoked at any time prior to the grantor’s disability or death. The primary advantages of the RLT include: (1)providing for the management of grantor’s assets upon his mental or physical disability thus avoiding conservatorship proceeding; (2) reducing costs and time delays by avoiding probate; (3) reducing the chances of a successful challenge or election against a will; (4) maintaining confidentiality by not having to file a public will; and (5) avoiding ancillary administration of out-of-state assets.

Two additional documents are typically executed together with the RLT: