The Revokable Trust: Is it Really Revocable?
Posted by Phil Craig
The revokable trust, really spelled as the revocable trust,
or the revocable living trust, but many refer to as the
revokable trust or the revokable living trust, is a very
popular and common estate planning tool. But is it really
revocable? You may be surprised.
The revokable trust, really spelled as the revocable trust,
or the revocable living trust, but many refer to as the
revokable trust or the revokable living trust, is a very
popular and common estate planning tool. But is it really
revocable? You may be surprised. First off, what makes it a revokable trust? Basically,
the right to revoke means the right to terminate the trust
as to one or all of the assets that are held in the trust. If the trust is a revokable trust, it also includes the
right to modify the terms of the trust. However, what many people often don't realize, until it
is too late, is that many revokable trusts contain language
that converts the revokable trust, in whole or in part,
into one or more irrevocable trusts. This is done usually through the use of the AB irrevocable
trust language many revokable trusts contain. This is done
typically after one spouse dies and is used for estate tax
planning. You can find more information about the
AB irrevocable trust at:
http://www.LivingTrustSecrets.com
which contains many will and trust resources. Another way the revokable trust becomes irrevocable is
when a parent dies and passes property to a trust for a
minor child. It is important to understand if your revokable living trust
becomes an irrevocable trust. You may impose obligations on
others that you are unaware of. Read the document and if
you have questions, consult a competent attorney. Good luck and until next time, Phil Craig P.S. Feel free to forward this on to any friends. Phil Craig is a licensed attorney and entrepreneur.
He started practicing law at age 25 in 1979.
He does not take on any more clients, but is
advisor to some of the biggest names in the internet
world. He shares his knowledge gained over the
last 25 years at his Living Trust Secrets newsletter site:
click here=========>http://www.LivingTrustSecrets.com ** Attn Ezine editors / Site owners **
Feel free to reprint this article in its entirety
in your ezine or on your site so long as you leave
all links in place, do not modify the content and
include our resource box as listed above. If you do use the material please send us a note
so we can take a look. Thanks.
|
