A trust created by an individual that is still alive, referred to as a trustor, and administered by a trustee is commonly referred to as a revocable living trust. The trustee of a living trust can be the trustor while they are still alive, with there being a named successor to take over upon the death of the trustor or at the point that the trustor becomes unable to make their own decisions.
An advantage to having a revocable living trust is the flexibility that it offers. If you decide that you want to make changes at any time, you are able to make such changes through trust amendments. You can modify such things as your trust beneficiaries as well as your trustee. You can also revoke your entire trust or change content through amendments and restatements.
Another advantage to a revocable living trust is the ability to avoid the process of probate proceedings. This will allow your estate assets to be made available to your beneficiaries much quicker. It also allows for your estate to be more private, as probate proceedings are public record. Revocable trusts are also much harder to contest than wills, allowing you better piece of mind when making decisions regarding your estate.
A downside to a revocable living trust is the amount of time required to set one up and maintain it during its contract life. Additionally, any assets moved to a living trust will need to be re-titled into the name of the trust. These assets can include real estate, bank accounts or brokerage accounts.
