A trust is a contract between a Grantor (creator of the trust) the Trustee (controls the trust) and the beneficiaries (benefits form the trust). A grantor determines how the trust will be laid out. They decide who gets what and when they will get it. You can create a trust that also allows you as the grantor to be the trustee. This type of trust is often used to substitute a will. It allows you to hold onto your assets while you’re alive while also being able to distribute them after death. The advantage the revocable trust offers is the avoidance of probate, which is required if you are to use a regular will. Other advantages of revocable trusts include:
Asset protection after your spouse’s death
Planning for disabled beneficiaries
Asset management for beneficiaries who cannot manage it themselves
Protection of assets from spouses marriage after death
Disability planning in case of a future disability before death.
Asset protection to keep your children’s assets safe
Allows you to keep your affairs private (Avoids probate court)
Avoids court altogether by assigning a trustee to handle the assets
Plan for the proper management of your business after you pass.
Revocable trusts can get very complicated and there are only a few ways in which they can provide all these benefits. Only a qualified estate planning attorney would be able to assist in this process. A revocable trust has many protections but it will not protect your assets from nursing homes, lawsuits, bankruptcy, divorce, or other creditors.