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What is the difference between a living trust and a revocable living trust?
Wiki User
∙ 13y ago
A living trust is a trust that exists and is operational during your lifetime. Such a trust may be set up for many different purposes and may be revocable or non-revocable.
A trust that doesn't become active until your death is called a testamentary trust as distinguished from a living trust.
By far, the most common living trust is a revocable living trust. "Revocable" mean it may be terminated at will by any of the persons who created it. The primary reason these trusts are created is to avoid probate court after the death of the person(s) who created or set up the trust. There are many other benefits of such trusts, such as avoidance of estate taxes for the heirs, creating special needs trusts for heirs with difficulties, disinheriting heirs, protecting family businesses, and many others, but avoiding probate is almost always the principal reason for a revocable living trust.
Non-revocable, or irrevocable trusts are generally used for transfer of assets during one's lifetime, often for tax purposes. For example, an irrevocable trust could be established to provide income to certain heirs during their lifetime, with the assets going to charity after the heir's deaths. This is often used to avoid estate taxes. The creator, however, cannot revoke and usually may not change the terms of the trust or take back the assets. They are no longer owned by the creator of the trust.
The principal difference between the two types of living trusts is that with a revocable trust, the creator of the trust can terminate the trust and regain ownership of the trust assets; and with a irrevocable trust, the creator of the trust gives up ownership and control of the assets and the trust cannot be revoked. There may be exceptions to this general explanation, but these are the principal distinctions.
For specific answers to personal situations, it is always best to consult with a local attorney with experience is this area of the law.
Wiki User
∙ 13y ago
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Difference between a Revocable Living Trust and Dynasty Trust.?
In both a revocable living trust and dynasty trust, the trust assets are managed by a trustee separate and apart from your personal assets. The primary difference is that a revocable trust can be modified or even revoked by you during your lifetime. Once a dynasty trust is created it cannot be revoked or modified by the settlor of the trust.
Can a person make their own revocable living trust?
Yes. If you are an expert in trust law.
Can changes be made to beneficiaries in a revocable trust that was originally prepared by an attorney?
Changes can be made to beneficiaries in a revocable trust that was originally prepared by an attorney. In a revocable trust, you can legally change the terms and end the trust at anytime before death.
Is the Settler of a Revocable Living Trust the person whos name appears on the Trust?
The settler is the person who creates the trust and transfers their property to the trust. More common terms are grantor and trustor.
can a revocable trust be terminated before it's expiration date and devided however the trustee wants or does it have to be divided equally shares?
A revocable trust is just that - revocable. If you are the creator of the trust, you can revoke it and change ownership of property.
Difference between a Revocable Living Trust and Dynasty Trust.?
In both a revocable living trust and dynasty trust, the trust assets are managed by a trustee separate and apart from your personal assets. The primary difference is that a revocable trust can be modified or even revoked by you during your lifetime. Once a dynasty trust is created it cannot be revoked or modified by the settlor of the trust.
Where is the form for the irrevocable trust Is the living trust the same as an irrevocable trust?
The biggest difference between the trusts is that the Living Trust is revocable and can be changed over time. For detailed information visit: http://www.ultratrust.com/revocable-trusts-vs-irrevocable-trusts.html
Can the surviving spouse dissolve a revocable living trust for the purpose of disinheriting a beneficiary?
Yes, a survivor can dissolve a revocable living trust
What does the Revocable Living Trust provide?
A revocable living trust is very similar to a living will. The owner of money or property can determine what happens to their estate after their death.
Why would one work with a revocable trust?
Revocable trust includes many advantages. Revocable Trust's main advantage is the agreement provides flexibility and income to the living grantor.
Is a residuary trust revocable or non revocable?
A residuary trust is set forth in a Will and is non-revocable after the death of the testator. It can be amended or revoked while the testator is still living.
Do you capitalize the word trust when referring to a revocable living trust in the general sense?
No. You only need to capitalize the word "trust" or "trustees" when you are referring to the specific trust. For example: As referenced in the John Doe Revocable Living Trust. John Doe, as Trustee for the John Doe Revocable Living Trust. However, if you are simply refering to the trust, you do not need to capitalize the word trust. The above-mentioned trust contains limited authority for the trustees.
Can a person make their own revocable living trust?
Yes. If you are an expert in trust law.
Is an irrevocable trust a living trust?
Yes. There are two types of trusts, living (intervivos) and testamentary. The living trust is created by a living person(called the settlor or trustor). The testamentary trust is created by the will of a deceased person. Living trusts are designated as either revocable or irrevocable depending on the authority of the settlor. If the settlor has the power to cancel or revoke the trust, it is a revocable trust. If the settlor has no power to revoke it then it is an irrevocable trust. Since the revocable/irrevocable distinction is determined by what the settlor can do while he or she is alive, the trust had to have been made during the settlor's lifetime. Hence, an irrevocable trust is a living trust. On the other hand a trust that is set forth in a person's will is revocable during the life of the testator simply by a modification of the will through a codicil. Once the testator has died that trust becomes irrevocable.
Can a property held in a Revocable Living Trust qualify for the Florida homestead exemption?
While I am not a Florida attorney, the general rule is that including property in a Revocable Living Trust does not change the ownership for purposes of a homestead exemption. Because such a trust is revocable at any time, it is still considered your property and therefore still qualifies for a homestead exemption.
After a revocable living trust has been established can additional property be transferred to it?
Yes. If the trust was properly drafted property can be transferred in and out of the trust by the trustee.
Can assets be siezed if a trustee of an revocable living trust goes bankrupt?
Probably not. The trustee and the Trust are entirely different things.
