Revocable trusts, commonly called "living trusts," are an effective estate-planning tool for avoiding the costs and hassles of probate, preserving privacy and preparing your estate for ease of transition after you die.
A revocable trust may be altered or terminated during the grantor's lifetime. Since the trust may be altered at any time until the grantor's death, it is considered part of the grantor's estate and is subject to taxation. The property is passed on to the beneficiaries only after the grantor's death, and the revocable trust then becomes irrevocable.
A grantor can also create an irrevocable trust, which produces tax benefits and asset protection, however, this type of trust may not be amended or revoked.
If you’d like more information about revocable trusts, please contact us online or call us at (915) 747-1665.