What is a Revocable Trust (“Living Trust”)?
A revocable trust (also referred to as a “Living Trust”) is an instrument created by a donor or settlor that will eventually hold title to the assets of the donor or settler on behalf of the beneficiaries. The Revocable Trust does not necessarily need to be funded during the lifetime of the donor or settlor, although many people choose to transfer assests to a Revocable Trust during their lifetime. The donor or settlor has complete control over the naiming the trustee and the beneficiaries and distributing assets contained in the trust. The donor also has the right to alter or make changes to the instrument during his or her lifetime and even to terminate the trust is he or she so desires. Donors or settlors may even name themselves beneficiaries of the trust during their lifetimes. A Revocable Trust does not protect assets from creditors of from any type of Medicaid assistance. This is due to the donor’s or settlor’s power to change the Trust. However, this instrument does protect the
