Your Revocable Trust (also called a Living Trust) is a valuable tool that helps you manage assets during life and upon your passing. The trust will use your social security number during your life and all losses and gains will be reported on your tax documents as if the assets are owned in your own name.
In the event you become incapacitated, your disability trustee can immediately take over to manage your trust assets, and she has the authority to make distributions for your benefit and for the benefit of your children or other named loved ones. The trust also specifies how your assets will be distributed upon your death and names a successor trustee to manage your trust assets upon your passing.
Importantly, trust assets avoid probate. This means that a trustee has the right to sell and distribute trust property without court approval. However, when the person who has a revocable trust, or Grantor, passes away, the Grantor’s trust assets can still be subject to creditor’s claims.