Revocable Living Trust Concepts: The Basics
Living trusts, sometimes called revocable living trusts, are legal contracts established by a person, referred to as the trustmaker. The purpose of the trust is to own and control the assets of the trustmaker in such a way that the trustmaker’s liability for income, inheritance and other taxes is lessened. The value held by the revocable living trust can be invested, or used to purchase material items, at the direction of the trustee. Usually, the trustmaker is both the beneficiary of the trust as well as the trustee controlling it.