A living trust (sometimes referred to as an “inter vivos trust”) provides for management of trust property during life, and distribution of trust property following death.
You must fund a living trust by titling property into the name of the trust. For example, to include your bank account in the trust, you must retitle your bank account in the name of the trust. Similarly, to make your house part of the trust, you must deed title of the house over to the trust. And then the living trust governs that property.
Who Controls the Property in a Living Trust?
- As long as you are able, you serve as trustee, and use trust property as you wish;
- Should you become incapacitated, the living trust names a successor trustee, for example a spouse or adult child, who manages trust property for your benefit. In this respect, with regards to trust property, a living trust acts as a kind of durable financial power of attorney;
- And then when you die, the trustee distributes trust property to the beneficiaries, in accordance with your instructions. In that sense a revocable living trust acts as a kind of Will substitute.
Located in Rockville, the Law Office of Henry Nash provides estate planning services in Montgomery County and throughout Maryland. If you have any questions or concerns about revocable living trusts and want to confer with an experienced elder law, disability law, and estates & trusts attorney, please feel free to contact us.