A Revocable Living Trust: A private family contract created during your lifetime that can be amended or modified at any time during your life. A Revocable Living Trust avoids probate of your estate and is a substitute for your Will. You will act as the Trustee of all of the assets owned by your Trust and you will still maintain full control over those assets. Upon your incapacity or death, the person named by you as the Successor Trustee, will distribute your assets according to the terms of the Trust.
A Revocable Trust may include “Continuing Trusts” for your beneficiaries that will allow the Successor Trustee to hold each of the beneficiary’s shares in separate continuing trusts until an age that you determine. For example, it is common for clients to require that a continuing trust remain in existence until the beneficiary reaches the age of 35. At age 25 they would receive 1/3 of their share, at age 30 they would receive 1/2 of the balance and at age 35, it would terminate.
Depending on the age and financial maturity level of the beneficiary, we will design the distribution provisions of each separate continuing trust based on each beneficiary’s individual needs. While assets are held in the Trust, the Trustees will use their discretion in making distributions for your children’s health, support, education and reasonable expenses. You may or may not elect to place restrictions on the Trustee’s discretionary distributions.