What is a Revocable Living Trust?

A Revocable Living Trust is a document that is typically created to avoid probate, is private (as compared to the public nature of probate), and is generally quicker to administer than the probate process (so the beneficiaries receive the assets faster).  With a Revocable Living Trust, the person who creates the Trust (the Grantor) will transfer certain assets into the Revocable Living Trust while alive (this is referred to as “funding” the Trust).   If done properly, there should be no tax effect to this transfer as the tax ID of the Revocable Living Trust is the Grantor’s social security number. And while alive and competent, the Grantor, the Trustee, and the Beneficiary are all typically the same person.  Then when the Grantor dies, the Trustee of this Trust will transfer the assets to the Trust beneficiaries (or to a Trust that will further stay in existence for the extended benefit and protection of the beneficiaries).