Under a revocable living trust, the client establishes the trust during their lifetime and transfers their property out of their own name and into the name of the trust.

The trust document states who takes over management of the property if the client later dies or becomes disabled. After the client dies, the trust also specifies how the property is disposed of, as would a client’s will. Since the trust owns the property and it did not die, the property in the trust does not need to be probated.

Trusts also allow for the management of assets in a variety of other contexts, such as trusts established for persons other than the client, where that person may be inheriting money from the client, and is or could be incapacitated or on public assistance that is “needs-based.” Trusts can also be used to minimize or avoid estate taxes, whether they are part of a revocable living trust or are established under the terms of a will.