When it comes to estate planning, you have several options for maintaining control of your assets even after you pass away. An inter vivos trust is often used to monitor the flow of assets. This legal document is created while you’re still alive and your assets are titled to the living trust by you, the trust owner. Once you pass away, the beneficiaries you designate gain access to the assets you’ve set aside, and the assets are managed by a trustee. If you’re a Maryland resident, here are some important things to know about trusts.
Revocable living trust
Revocable trusts are documents you create that you can change over time. You can change the assets in the trust, as well as the beneficiaries, the assigned trustee, the distribution of your assets. You can make these changes while the trust is established and while it is in effect.
If you decide the trust is no longer applicable, you can revoke the trust entirely. Any changes to revocable trusts are completed using a trust amendment document that you initiate.
Irrevocable living trust
Irrevocable living trusts are documents that you generally can not amend after you’ve added your signature to the forms. Your designated beneficiaries or trustees will remain the same from the time you establish the trust until the trust is no longer funded or applicable.
It is also important to note that a revocable living trust will turn into an irrevocable trust when the trust owner dies or once the provision for the trust has been satisfied. These provisions could include a specified date the trust owner decides on, the death of a spouse, or a major life change for one of the trust beneficiaries.