Revocable Trusts: The Swiss Army Knife Of Financial Planning

The Revocable Trust

One of the most useful trusts for many of our clients is a revocable trust (inter vivos) where the grantor creates a trust, funds it, manages it by him or herself, and has unrestricted rights to the trust assets (corpus).

The client has the right at any time to revoke the trust by simply tearing up the document and reclaiming the assets, or perhaps amend the document to accomplish alternative financial planning goals.

You don’t need a trust company or bank as trustee. You just draw up a trust document and re-title some property to the trust. Life goes on pretty much like it did before. You give up nothing in the way of rights, and you remain captain of your own ship.

Assets transferred to a revocable trust are not a gift. They can be reclaimed at any time. You have unrestricted rights to the property. But, during your life the trust gives you a very useful shell to provide management if and when needed.

OK, I get it. It sounds pretty strange until we start looking at the potential lifetime and estate planning benefits that can be incorporated into the trust:

Lifetime Benefits

If the grantor is unable or uninterested in managing the trust, the grantor can hire an investment advisor to manage the account in one of the major discount brokerages like Schwab, TD Ameritrade or Fidelity.

By | 2019-02-21T14:48:58+00:00 February 21st, 2019|Blog|

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