Revocable Living Trust - FAQs Between Granny and Tweety
December 12, 2004
By Kathy Curtis
How can you set up a trust and make changes to it
during while you're alive? The answer lies in a revocable
living trust. Not every trust is meant for every
person and every situation. In fact, trusts don't
always provide the complete coverage you need to make
your passing on easier for those around you.
A Document To Behold
Revocable living trusts are important documents for
every person to develop. The main reason most people
form a trust is to protect their loved ones from loosing
possessions to heavy probates (taxes). Tweety's sweet
old Granny is loaded with a few common yet highly
important questions about these trusts.
Fortunately for Granny, Tweety widely read up on this topic as
posted in websites by many reputable law firms, the FTC (Federal
Trade Commission), and a state attorney.
Granny: What is a trust and how do you set up one?
Tweety: A trust is a legal document that ensures your assets are
passed on to whomever you choose. For many grantors (the person
who established the trust), the easiest part of creating a trust
is filling in the form and the hardest part is making sure to transfer
over possessions to the trust.
Granny: Among all the types of trusts, why choose a revocable trust?
Tweety: A revocable trust insures that the grantor can make changes
to the trust, as long as the grantor is also the trustee and in
sound condition.
Granny: While I'm living, can I make changes to my revocable trust?
Tweety: Revocable living trusts are forms that permit the trustee
to make changes while he is still alive.
Granny: What happens to my care if I should need to step down as
trustee?
Tweety: Many revocable living trusts include the trustee's preference
for medical and health care if needed while she is still living.
The trustee no longer acts as primary trustee and the appointed
back up trustee upholds the grantor's plans.
Granny: Does a revocable living trust protect me from everything?
Tweety: No. A revocable living trust isn't the only trust option
available. For example, you may elect to set up a pet trust. A trust
is also not the same thing as a will. Lastly, a revocable trust
does not protect assets from litigation while the grantor is still
alive.
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