Abbreviation for Revocable Trust
What Is a Living Trust?
A living trust is an estate planning tool that takes care of your assets while you are still alive. As the name implies, it is legally active even while you are alive, unlike a will which becomes active only after your demise.
Some abbreviations for living trusts are:
- RLT - Revocable Living Trust
- APT - Asset Protection Trust
- SNT - Special Needs Trust
- CLT - Charitable Lead Trust
- AB Trust - Tax Bypass Trust
Types of a Living Trust
Asset protection trusts, Special need trusts, Joint living trusts, Charitable trusts, Tax By-pass trusts, and Constructive trusts, are all types of living trusts. They can be broadly classified into a revocable living trust or an irrevocable living trust.
Revocable living trust (RLT)
All types of revocable trusts are flexible and amenable to changes or outright cancellation as the name implies. This means that they give you as the owner, the right to modify them as many times as you wish all through your lifetime. They are also legally considered a part of your property and as such attracts taxes for which you will be liable for.
Irrevocable living trust (ILT)
Irrevocable trusts, on the other hand, are rigid. Once set, they become cast on stone and would need a consensus of all parties to effect any change. One advantage of an irrevocable trust is that it is considered a separate entity in the eyes of the law and as such inputs no tax burden on you as the owner.
Common Terminologies in Revocable Trusts
Here are some other common terminologies you may find as you navigate the world of living trusts:
|Grantor or Settlor||You refer to the person creating a living trust as a grantor or a settler.|
|Guardian||A person who you place in charge of your minor beneficiary, after your demise, until they come of age.|
|Beneficiary||A person whom you have designated to legally own all or a portion of the assets in your living trust.|
|Inter Vivos||This is a Latin phrase that means “between the living”, or more explicitly “while alive.” It is used alongside a trust to show what type of trust it is.|
|Inheritance tax||A kind of tax that comes with a property that has been inherited.|
|Codicil||This is a document used to make an amendment to a will.|
|Executor||A person or an institution that you have chosen to distribute your assets according to your will at the point of your demise.|
|Probate||The legal process through which a court verifies rightful heirs or beneficiaries to an estate, in accordance to a will, upon the demise of the owner.|
|Trustee||A person or institution that you have appointed to manage the assets in your trust and properly disburse them after your death, in line with your instructions.|
|Estate tax||This is the tax paid on the total value of an estate by the trustee or beneficiaries of a trust, upon the death of the grantor.|
|Intestate||Intestacy is the status of an estate or asset when it is not included in a will or living trust.|
How to Set Up a Living Trust
The steps to set up a living trust are pretty simple. Once you have made a list of your chosen beneficiaries and trustees, you can proceed with the following steps:
- Obtain a living trust form
- Select what type of trust you want -- joint or single and revocable or irrevocable
- Fill in your chosen beneficiaries
- Fill in your chosen trustees
- Make a list of all assets you intend to include in the trust
- Add all the rules and special provisions you wish to include in your trust
- Notarize your living trust document in a state court
- File a quitclaim for all your chosen assets and transfer them to the name of the trust
Have DoNotPay Create a Revocable Trust for You
You wouldn't want to risk a legal contest of your trust by using generic living trust templates. DoNotPay can help you prepare a tailored living trust for incredibly less than a lawyer would. Here are the steps to use DoNotPay:
- Sign up with DoNotPay through the app or website and search for “Revocable Living Trust”
- Add your trustees and beneficiaries
- Select assets and properties to add to trust
- Answer a few more questions about assets not included in the trust
- Choose which state you intend to notarize your revocable trust in
After you submit the task, DoNotPay will create a personalized living trust for you and ensure it includes all the terms required by your state. You can download the PDF or DOCX file and make changes to it as you deem fit before getting it notarized.
Living Trust Guides by State
We’ve create living trust guides by state - feel free to check them out:
|New Jersey||Massachusetts||North Carolina|
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