A Revocable Trust is the most popular type of Trust used for Estate Planning purposes. With a Revocable Trust, you set up a Trust for your own benefit and you remain in charge of the Trust during your lifetime. As such you are the Grantor, Trustee and Beneficiary all at the same time.

Upon your death, the Trust designates a “Successor Trustee” who manages the Trust and distributes the Assets in the Trust pursuant to its terms. There is also one or more “Successor Beneficiaries” who benefit from the Trust.

A Revocable Trust accomplishes the same goals as a Will, except a Trust does not have to go through a court process known as Probate after death. A Will has to be submitted to Surrogate’s court and the Will has to be “probated.” Probate is a lengthy and expensive process. During the Probate process, all beneficiaries and relatives who would have inherited if there was no Will are notified and are given the opportunity to challenge the Will. During this Probate process, the beneficiaries do not have access to your funds until the process (and any and all challenges to the Will) are complete.

A Trust bypasses the Probate process in its entirety for assets that are placed into the Trust. That means that upon your death, the beneficiaries have immediate access to your assets without going to court.

With a revocable Trust, you can also amend or revoke the Trust at any time while you are alive. After your death, the Trust terms become “irrevocable” and the succcesor beneficiaries named in the Trust get the assets designated to them by the you in the Trust.

Example: you set up a Trust and transfer your house and bank account into the Trust. While you are alive, you are the Trustee, meaning you remain in charge of the assets. You are also the beneficiary, meaning you get to use your money. In the Trust, you name a “Successor Trustee” (let’s say your son) and “Successor Beneficiaries” (let’s say your son and daughter). After your death, your son will distribute the assets in the Trust to himself and your daughter.