The Revokable Trust: Is it Really Revocable?
Legal Article GuideBy: Phil Craig
The revokable trust, really spelled as the revocable trust, or the revocable living trust, but many refer to as the revokable trust or the revokable living trust, is a very popular and common estate planning tool. But is it really revocable? You may be surprised.
First off, what makes it a revokable trust? Basically, the right to revoke means the right to terminate the trust as to one or all of the assets that are held in the trust.
If the trust is a revokable trust, it also includes the right to modify the terms of the trust.
However, what many people often don't realize, until it is too late, is that many revokable trusts contain language that converts the revokable trust, in whole or in part, into one or more irrevocable trusts.
This is done usually through the use of the AB irrevocable trust language many revokable trusts contain. This is done typically after one spouse dies and is used for estate tax planning. You can find more information about the AB irrevocable trust at: http://www.LivingTrustSecrets.com which contains many will and trust resources.
Another way the revokable trust becomes irrevocable is when a parent dies and passes property to a trust for a minor child.
It is important to understand if your revokable living trust becomes an irrevocable trust. You may impose obligations on others that you are unaware of. Read the document and if you have questions, consult a competent attorney.
Good luck and until next time,
Phil Craig
P.S. Feel free to forward this on to any friends.
Phil Craig is a licensed attorney and entrepreneur. He started practicing law at age 25 in 1979. He does not take on any more clients, but is advisor to some of the biggest names in the internet world. He shares his knowledge gained over the last 25 years at his Living Trust Secrets newsletter site: click here>http://www.LivingTrustSecrets.com
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