A revocable living trust can be a very viable solution for a wide range of people who have enjoyed some modicum of financial success. You receive a number of different benefits when you utilize this type of trust as a vehicle of asset transfer.
Efficient Control of Resources
When you create a revocable living trust, you name a trustee and a beneficiary, or multiple beneficiaries. The trustee is the trust administrator, and the beneficiary is the individual who can receive monetary distributions from the trust.
The trust creator or grantor will typically act as the trustee and the beneficiary throughout his or her life. Since the creator of the trust can serve these roles, complete control is retained. Plus, remember, the trust is revocable, so it can be dissolved by the grantor of the trust at any time.
Assets can be added to the trust along the way, and the grantor can remove assets from the trust as well, so there is a great deal of flexibility.
Future Asset Distributions
The ultimate goal of the trust is to facilitate future asset distributions. To make this happen, a successor trustee is named to administer the trust after the passing of the grantor, and successor beneficiaries are also named in the trust agreement.
If you create a revocable living trust, you leave behind specific instructions that the successor trustee must follow with regard to asset distributions. This is another benefit, because you can be quite specific.
These distributions would not be subject to the legal process of probate, so the beneficiaries could start to receive distributions in a timely manner.
Termination of Living Trust
Now that we have provided the appropriate background information, we can look at the question that serves as the title of this blog post. In essence, you decide when your living trust will terminate.
You could allow the trustee to distribute all of the resources to the beneficiaries immediately after your passing. Under these circumstances, the trust would terminate when the trusts administration tasks were completed.
As an alternative, you may prefer to allow for ongoing, limited distributions over an extended period of time. Under these circumstances, the trust could terminate when the resources were exhausted.
It would also be possible to set up the trust so that it will terminate when a certain event takes place. For example, you could instruct the trustee to distribute the entirety of the resources when a beneficiary reaches the age of 30.
Learn More About Living Trusts
If you would like to learn more about revocable living trusts, download our special report. This report is being offered to our readers free of charge at the present time, you can obtain access through this website.
To get your copy of the report, visit this page and follow the simple instructions: Living Trust Report.
Take Direct Action
We can help if you are interested in creating a living trust. Our firm offers free consultations, and you can send us a message through our contact page to set up an appointment: Smithtown NY Estate Planning Attorneys.