Law Offices of Roshni T. Desai
Long-term Planning For Orange County

Revocable trusts and their uses

Californians have a number of options available to them when they want to build a trust. One of these potential options is a revocable living trust, which has unique properties.

FindLaw defines a revocable living trust as a three-party trust that involves a beneficiary, a trustee, and a grantor. The grantor is the one who created for - and usually also provides for - the trust in question. The beneficiary is the one who receives the funds within the trust, and the trustee is the intermediate person who holds the title to the property and distributes it to the beneficiary according to what's written within the trust.

Revocable trusts are unique because normally, trusts are relatively difficult or even impossible to change or revoke ones they have been made. These types, on the other hand, allow for the grantor to make changes for reasons varying from disability, divorce, death, marriage, and so on.

These trusts, according to the American Bar Association, will usually become irrevocable upon the grantor's passing. However, in the time they are alive, they may get great peace of mind from being able to undo their choices. Even if no changes are ever made, it can be a good "safety net" of sorts, or a back-up plan if something goes wrong.

If a grantor has any inkling that their situation might change in the future, or they simply want to prepare for that possibility even if they hope nothing will change at all, then a revocable trust could be the right option. In the end, the potential grantor should examine all options closely before making a decision.

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