What is a Revocable Living Trust?

A revocable living trust can be modified or revoked by the person who establishes and transfers property into the trust (grantor). This kind of trust can be a useful estate planning tool because when you die, the assets in the trust pass directly to the beneficiaries you’ve named in the trust rather than through your will and the probate court system.

Generally, a revocable living trust will not impact your income taxes. Estate taxes can also be planned in a more streamlined way through a revocable living trust rather than just within a will. The revocable living trust will preserves the step up in basis for capital gains tax; therefore, your children (in most cases) will pay less tax after you have passed than if you had sold the asset during your lifetime.

This summary of Revocable Living Trust planning was prepared by Stone Law, LLC and is intended to give general information about estate planning, not specific legal advice.  For more information, contact Stone Law at 877-897-6591.

While we make a concerted effort to maintain and update the information on this site Stone Law, LLC makes no representation, warranty, or claim that the information on this site is current or accurate. Additionally, please be aware that state laws may differ, do not rely solely on information provided on this site without consulting a local attorney.