A Revocable Living Trust, also known as the Family trust or the Living trust is a legal document that holds ownership to your properties and assets. It is a written agreement that gives someone the responsibility to manage properties for the benefit of others. In order for the revocable trust to be considered, you should own a real property or your estate must have a value of over $100,000.
A trust involves three participants who are the settlor or grantor, the trustee, and the beneficiary. The settlor is the person who creates the trust. The trustee is the person who accepts the responsibility to distribute or manage the trust property according to the trust agreement and the beneficiary will be the one who will receive the income from the trust property or the property itself.
A living trust is also a basic tool for modern estate planning. By creating this trust, you can manage your properties while you are still alive and pass it on to your beneficiary at death without any need of a probate proceeding. One of the advantages of the living trust is avoiding probate. Once the trust is made, the ownership of the property will then be transferred to the trustee so then there will be no need for the property to be probated when the settlor dies. Instead the trustee will have the authority to step in the settlors shoes and be responsible in settling the trust outside of probate without any court interference.
Unlike a will (Last Will and Testament), which is only effective once after the person died, a revocable living trust can benefit you even while you are still alive. It is revocable because as long as you are alive and competent you can change and end the trust at any given time.