Frequently Asked Questions About Revocable Living Trusts

Can I act as my own trustee?

Yes. If you are legally competent to manage your own financial affairs, you can serve as the trustee of your own revocable living trust. In fact, most people who create revocable living trusts name themselves as trustee. If you’re married, you and your spouse may serve together as co-trustees.

What can I do with my assets once they’re in my revocable living trust?

As trustee, you maintain full control over the trust assets. You can manage them exactly as you did before: spend, invest, gift, or sell them as you see fit. You retain the right to change the terms of the trust or revoke it entirely at any time while you are alive and competent.

Will my taxes change with a revocable living trust?

No. Creating and funding a revocable living trust does not change how you file your taxes. You’ll report income, deductions, and credits the same way you always have. There are no new tax filings required for the trust while you are living.

Will my revocable living trust reduce my income taxes?

No. The trust is not intended to provide income tax advantages. Its primary purposes are to avoid probate, provide incapacity planning, and facilitate the management and distribution of your assets.

Will transferring real estate into my trust increase my property taxes?

No. As long as the transfer is properly structured, there will be no reassessment or increase in your property taxes when you move real estate into your revocable trust.

Can I transfer jointly owned property into my revocable trust?

Yes. You can transfer your share of jointly owned property into your trust. Doing so does not affect the ownership interests of the other co-owners.

Can I name trustees and beneficiaries who live in other states?

Yes. There are no residency restrictions for trustees or beneficiaries. You may name individuals who live anywhere in the U.S. (or even abroad) to serve in these roles.

Will I need an attorney every time I acquire new assets?

No. Once your trust is established, you can acquire new assets in the name of the trust directly. You may consult an attorney for guidance initially, but you do not need legal assistance for every future asset purchase.

Does my trust need to be registered or recorded?

No. A revocable living trust is a private document and does not need to be registered or recorded with any governmental agency. However, if you transfer real estate to the trust, new deeds reflecting the trust ownership must be recorded.

Can I sell assets that are owned by my trust?

Yes. As trustee, you can sell assets just as you could before. The only difference is that you will sign documents using your title as “Trustee” of the trust.

Can I change the terms of my trust?

Yes. You can amend or revoke your revocable living trust at any time during your life, so long as you remain competent.

Can I transfer real estate into my revocable living trust?

Yes. In fact, transferring your real estate to your trust is crucial to avoid probate in any state where you own property. Real estate held in your trust bypasses the probate process entirely.

Is a revocable living trust a loophole that might be closed in the future?

Not likely. Revocable living trusts are a well-established legal tool for managing and transferring assets. While estate tax laws may change, the validity of living trusts is not in question.

Can I transfer both separate and jointly owned property into my trust?

Yes. Both separate property and jointly owned property can be transferred into your trust. Proper drafting ensures that each type of asset retains its legal character. For married couples, property remains appropriately classified even within the trust.

Can any attorney create a revocable living trust?

Not all attorneys have the experience or focus necessary to create an effective estate plan. It’s important to work with a firm that concentrates in estate planning and understands trust and tax law to ensure your trust is drafted and implemented correctly.

Is my trust still valid if I move to another state?

Yes. Your revocable living trust remains valid if you move. However, you should have it reviewed by an estate planning attorney in your new state to ensure it aligns with any local legal nuances or requirements.

Is a revocable living trust only for wealthy people?

No. A revocable living trust is beneficial for a variety of different reasons, not just based on asset levels. It helps avoid probate, simplifies estate administration, and provides peace of mind regardless of the size of your estate.

Is a revocable living trust a good idea for single people?

Absolutely. Whether you are single, divorced, or widowed, a revocable living trust can help you avoid probate, protect your assets, and ensure your wishes are followed without court involvement.