Primary and secondary trustees. Biteler says many people are initially concerned they'll lose control of their assets if they set up a revocable living trust. "That's a myth," she says. "As long as they're mentally capable, they'll have complete control over their assets." This is accomplished by naming the grantors -- the people setting up the trust -- as the primary trustees of the trust.
It's only when those trustees choose to relinquish control, or when they lose the capacity to manage their own affairs, that the "secondary trustee" takes over. Biteler recommends that a person's doctor be the one who decides when he has lost that capacity. Otherwise, it's the trustee's decision to decide when control transfers, Biteler says.
If someone is concerned he'll lose control of his trust too quickly, he may have chosen the wrong person to be his secondary trustee. "If that's the concern, then that person shouldn't be the senior's agent," she says. He should name someone he trusts completely. That doesn't have to be a family member. In fact, in some families it makes sense for a trusted family friend to fill that role instead. In rare situations, Biteler says, people don't have anyone they're comfortable appointing as secondary trustee. In that case, nonprofit organizations such as Catholic Charities or Jewish Family Services can provide someone to serve in this role for a fee, which would be paid from the estate.
Once the last surviving trustee dies, it's this secondary trustee who carries out the primary trustee's' wishes, making sure assets go to the beneficiaries named in the trust.
Funding a revocable living trust. A revocable living trust alone isn't enough to avoid probate. Once the trust is constructed, it needs to be "funded." This means the people creating the trust need to retitle their assets, such as real estate or brokerage accounts, as belonging to the trust. The trust itself is like an empty box; its value is determined by what's been put inside it. A trust can only avoid probate to the extent that assets are in it. "It doesn't do any good to have a beautiful trust with nothing in it," Biteler says.
Generally, all of the person's assets should be placed in the revocable living trust. The exception would be an IRA, which doesn't go into the trust; instead, either the trust or a specific individual is named as a beneficiary of the IRA. Life insurance is usually handled in the same way. A financial planner and attorney can and should assist the trustee in transferring his assets into the trust.
Hey LERHODE, Thanks for your comment. I'm sorry to hear you weren't able to find the information you were looking for. If you'd like, you can post any questions you have in our Ask & Answer section here: ( http://www.caring.com/ask ). I hope that helps, take care! -- Emily | Community Manager
DID NOT ANSWER QUESTION. PROCEDURE TO REVOLK A REVOLKABLE TRUST. WRITTEN REVOLK ETC?
Hi emilypinaud, Thanks for you question. If you like, you can post your question in our Ask & Answer section here: http://www.caring.com/ask -- Emily
My mother and father have a living revokable trust..They named me POA and left the house to me. We now live in it together,but their names only appear on the house we got on a VA loan.The man who did the trust says I will also inherit their debt.Car payments credit cards etc. Is this true,and what happens if they do a bankruptcy. My name is not on the house but I am the trustee?
The problem I see is that it is a system, like so many, that fails when the person at the center develops AD or other dementia. At that point his ability to manage the trust is gone and he is ripe for manipulation, which can be by unscrupulous attorneys who set up the trusts. It all hinges on a presumption of competence of the person with assets and a presumption of both honesty and competence of his advisors/attorney, so to me the fact that it ever works well at all is in spite of, not because of, the setup. If there are concerns about symptoms of dementia, or a family history of it, I would be very leery of relying on the declining person's judgment regarding changes to the trust.
Clear writing.
I had heard of a Revokable Trust but, had no true idea. I have a much better understanding of how it works and how important it will be for some folk. Thank you.
Can someone recommend a book on irravocable trusts and living wills etc. I own a home plus whats inside. I've done will's with my father which ended up in probate. Prices of homes have dropped which in CA 99,999 doesnt have to go to probate if you have a will otherwise an attorney cost 4 percent of the first 100,000 and 3 percent on anything over that so I know to avoid a will. Any help would be nice. Thank you
estate planning
This is the first time I read an article about the revokable trusts and it actually made sense to me. There is a wealth of information in your estate planning section! This is such a great website. Thank you!
What is the difference between a Revocable Living Trust and just a Living Trust ?
can a revokable trust be revoked after the grantor dies?
Who was the broker in question ?
Send the broker a letter saying that you are dissatisfied with his service, ask what needs to be done to release the account, and what SEC guidelines he is referring to. Send a copy to the Branch Manager. This would be considered a client complaint, and the SEC requires all client complaints to be kept on file by the firm's Compliance Department and addressed promptly. Watch how fast the firm releases the account and he says good-by to you as a client.
My brother and I are trustees in a trust by our late parents. Now that father has passed, a broker will not release the only account remaining to be settled citing SEC guidelines but not which specific guidelines as to why. Thoughts?