A revocable living trust is a trust that deeds property to heirs
A revocable living trust is a trust that deeds property to heirs, but permits the grantor to retain control over the property during his or her lifetime. Upon the grantor’s death, the property passes to the beneficiaries, avoiding probate, which is the judicial process wherein a court appoints an executor to carry out the provisions of a will. Because probate can be a time-consuming process and becomes a matter of public record, developing estate planning strategies with a qualified professional can help avoid probate. While a revocable living trust does not provide tax savings for the grantor during his or her lifetime, upon death the trust becomes “irrevocable,” and beneficiaries are entitled to the tax advantages an irrevocable trust receives. Individuals involved in estate planning should work with an estate planning team, including their personal legal or tax counsel.
