Revocable Trust

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A revocable trust, also known as a living trust, is a legal arrangement in which an individual (the grantor) transfers their assets into a trust during their lifetime.

The grantor can serve as both the trustee and the beneficiary of the trust and can modify or revoke the trust at any time. A revocable trust is often used as part of an estate plan to help manage and distribute assets after the grantor’s death.

The assets held in the trust can be transferred to beneficiaries without going through the probate process, which can be time-consuming and expensive. Revocable trusts can also provide more privacy than a will, as the trust agreement is not typically made public.

While a revocable trust offers many benefits, it’s important to carefully consider the potential drawbacks and consult with a legal or financial professional before setting up a trust. Revocable trusts can be more expensive to set up and maintain than a will, and may not offer the same level of creditor protection as other types of trusts.

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