What is a Revocable Trust?
A revocable trust is a type of trust that can be changed or terminated by the settlor, who is the person who created or contributed property to the trust. The settlor transfers ownership of assets into the trust and designates a trustee to manage those assets for the benefit of the trust’s beneficiaries. Examples of what can be included in a trust include real estate, stocks, bonds, motor vehicles, and more.
A trust can also include instructions on how specific assets are supposed to be distributed and under what circumstances according to the settlor’s wishes. This is different from an irrevocable trust, which mostly cannot be revoked or modified after being signed. Under Tennessee law, unless the terms of the trust specifically state that the trust is irrevocable, then the creator of the trust may revoke or amend the trust.
With a revocable trust, the settlor retains the ability to modify or revoke the trust during their lifetime. This means that they can change the terms of the trust, add or remove assets from the trust, or even dissolve the trust entirely.
Revocable trusts are often used as an estate planning tool to help manage and distribute assets to beneficiaries. They can be especially useful in avoiding the probate process, which in some cases is time-consuming and expensive. Because the trust is revocable, the settlor retains control over their assets while they are alive and can ensure that their assets are distributed according to their wishes after they pass away.
Roles in a Trust
- Settlor - Individual who creates the trust.
- Trustee - Individual in control of the trust during the Settlor’s lifetime, and this can be the settlor.
- Successor Trustee - Individual in charge of distributing assets in the trust upon the death or incapacitation of the settlor.
- Beneficiaries - Individuals who will receive distributions from the trust and will inherit the assets in the living trust upon the settlor’s death.
How Do I Make a Revocable Trust?
Judy Oxford can assist in helping create a revocable trust to accomplish your goals for your estate. Here are some practical items that will go into creating your trust:
- Determine which of your property and assets will be included in the trust,
- Pick beneficiaries who will receive the trust property,
- Name beneficiaries who will receive equal portions of undistributed property,
- You may name parties whom you wish to specifically exclude from being recipients of any trust property,
- Sign the document, and
- Have the document notarized.
Along with those elements, Tennessee state law requires that the settlor must also be of sound mind and has not been coerced or unduly influenced by any other party into creating the trust.
Judy Oxford Can Help in Tennessee
I have over 30 years of experience serving the legal needs of those in Tennessee. When you are facing potentially life-altering complicated issues, you should consult a professional. I am committed to serving your best interests and have the skill necessary to achieve your goals. Call 615-791-8511 today to get started.