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Revocable Living TrustExplanation - Creating a trust is like creating a business for your personal affairs and assets. If you were to create a business to sell clocks, then you would open a checking account, put some money into it, and write checks from that account to purchase all of your clock parts. The business would own the clock parts and the money in the checking account separate and apart from you. The business owning the inventory, cash, equipment, & furnishings doesn't bother most people because they know they are in charge of the company. If something happens to you and you need things done with your company, you have instructions in place for who is to take over which responsibilities in your absence.
1. Trust = Your personal "business" like entity
Benefits - Appropriate and Comprehensive Legal Planning with a Revocable Living Trust based estate plan can reduce the emotional trauma your loved ones face, give you a say in your care once you are incapacitated, and assure that what you have goes to who you want, when you want, and how you want. If done properly you will: 1. Have a Disability Trustee in Place
- Flow chart of Revocable Living Trust for a married couple
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A trust is exactly the same. You create a separate entity called a trust and you place some of your assets inside of it. You are the manager of the trust (called a "Trustee." The trust owns things separate and apart from you but you still control it. The trust is almost a magical document in what it can perform. You decide how you want your life run when you are incapacitated or have passed away and the trust is the contract that instructs the next manager/Trustee how they will handle things for yourself, your spouse, your children, charities, etc....
