What are the phases of a revocable living trust? These 4 illustrations will help you to understand how a trust works throughout the lifetime of your family. It is taken from the short video entitled Understanding Living Trusts which can be found here.
The family establishes the estate plan. They still have full control over their assets, but they know the children are protected.
The plan remains in place. The children, now adults, are added to the estate plan as successor trustees and powers of attorney.
After the loss of the first spouse, the plan continues to work. The surviving spouse has complete control. If there becomes a need, the children can help pay bills or assist with medical decisions.
When the time comes, the adult children settle the estate, free of probate, with immediate distribution, and with the protection that a trust affords them from any financial problems they might have, unrelated to the parent’s estate plan.