Revocable Trust Drafting: Funding Issues, Transfers, Tax Planning, Disposition of Personal Property and Real Estate

Effective use of the right type of trust can save on taxes, clarify intent, organize the transfer of assets, and simplify estate administration. Trusts and estates counsel use revocable trusts to protect assets and provide a level of flexibility to adapt to changing circumstances while also maintaining control of assets.

Revocable trusts are created when the grantor executes a trust agreement naming a trustee to administer the trust. This trust agreement will define the grantor's desires and plans for assets during the grantor's lifetime, incapacity, and at death. The grantor typically retains the right to distribute trust property, change or revoke the trust, and make discretionary distributions of income and principal. Upon the grantor's death, the property is distributed to the beneficiaries as directed by the trust agreement.

Revocable trusts can be funded at death and during the lifetime of the grantor. Funding a trust during a grantor's lifetime requires reregistering securities, real property, and other assets in the name of the trust.

Counsel must understand the legal framework and rules related to revocable trusts, requirements for transferring assets, restrictions, grantor and trustee powers, how to make distributions, and various tax considerations.

Listen as our authoritative panel of estate planning counsel discusses the legal framework and critical considerations for revocable trusts, pros and cons of their use, facilitating transfers, funding issues, dispositions of personal property and real estate, and other key considerations.