| Short Answer: The owner of property, as the Trustor, gives the property to himself, or herself, as the Trustee, to hold for his or her own benefit. The trustors retain all the rights and prerogatives of complete ownership of trust assets. When the Trustor (or Trustors) dies, the successor trustee will pass the property to another Beneficiary. |
| Philip McCarthy Attorney at Law |
| How Does the Living Revocable Trust Work? |
| Long Answer: A Trust is created when a person who wants to transfer some property (The Trustor), gives legal title of that property to a neutral person (The Trustee), to hold for the benefit of a person (The Beneficiary) who will ultimately have complete title to the property. Although the trustee has legal title to the property, the beneficiary has equitable title to the property. This means that the trustee must not act in any way that will injure the beneficiary’s ultimate right to possess the property. In creating a trust there must be these three persons: the Trustor, the Trustee and The Beneficiary. One person can play any two of the parts. However, to have a trust one person cannot play all the parts. If a person gave property to himself to hold for himself, there would be no trust. There would be mere ownership. With a Living Revocable Trust the owner of the property, as the Trustor, gives the property to himself, or herself, as the Trustee, to hold for his or her own benefit. However, when the Trustor (or Trustors) dies, the property will pass to another Beneficiary. This is why a Living Revocable Trust is really a trust. The trust is created when the Trustor: 1) declares that he has decided to place some property in trust, 2) has named the Trustees and the Beneficiaries, 3) has given instruction for the operation of the trust, and 4) has put some property into the trust. |
| For a more detailed analysis of How Your Living Revocable Trust Will Work contact me. |
| For a more detailed analysis of How Your Living Revocable Trust Will Work contact me. |