A trust is an arrangement in which property is transferred from the Grantor or Grantors (the persons creating the trust), to the Trustee (the person who will manage the trust property), to be held for the benefit of a person or persons (the Beneficiaries), on terms the Grantors spell out in the trust agreement. Of course the Grantors and Trustees can be the same person and usually are in the case of the normal situation (such as when a husband and wife set up the trust and they act as Trustees for the benefit of their children who are the Beneficiaries).  A revocable trust can be revoked or changed by the Grantors at any time.  Generally, the Grantors are the initial Trustees and Beneficiaries of a revocable trust.

          A typical revocable trust provides that property transferred to it will be held for the sole benefit of the Grantors as long as the Grantors are alive. A revocable trust can be revoked by the Grantors prior to death. When both of the Grantors die, the trust property is distributed to the remainder Beneficiaries, usually the children of the Grantors, or continues to be held in trust for their benefit.

        A real advantage of the revocable trust is that the legal concept is that the Grantors do not own the property (even though the Grantors have full control over the property) therefore when both of the Grantors die the property does not go into Probate (with the 6 month wait and expense) but the named successor Trustee takes over control of the trust property and distributes as is set forth in the trust.

        Another great advantage of the revocable trust is that the Grantors can state in the trust instrument how and when the Grantors want the trust property to be distributed to the beneficiaries, therefore the Grantors can space the distribution over a period of time so that the beneficiaries do not squander the funds immediately and then have not funds later in their life (i.e. a distribution of 25% at age 21, 25% at age 25, 25% at age 30 and 25% at age 3%).  Without the trust, if the individual dies and the individual's property goes into Probate, the funds for the beneficiary will go to that beneficiary when they turn 18, which is not always the best thing for the beneficiary. 

      A revocable trust has the following advantages:

• Does not go through Probate (maintains privacy and confidentiality);
• Expedites distributions to the beneficiaries,
• Reduces administrative expenses of Probate

         In the event you would like to find out more about the use of a revocable trust please call and set up an appointment to see Ron Williams and he will be glad to explain this process to you further.