Revocable Trust

Frederick J. Kramer

Attorney and Counselor at Law

Elder Law and Estate Planning

(516) 293-4747

REVOCABLE TRUST

Revocable Trusts are frequently used to avoid probate. Assets funded into trusts during one’s lifetime are not owned in the individual’s name at death and therefore avoid probate. The trust must be funded with assets, however, to achieve its purpose.

The Revocable Trust is totally controlled by you during your lifetime. You receive all trust income and retain full control over trust principal (assets) during your lifetime. All trust income would remain taxable to you and thus reported on your individual (joint, if married) income tax return. Its primary purpose is to avoid probate at your death. Upon death there is no requirement to submit the Trusts to the Court for probate. The Revocable Trusts are self terminating upon death. In the case of a surviving spouse, if properly drafted, the Revocable Trust can optimize estate tax savings and asset protection in the event you required long term care as a survivor.

Since you retain total control over the Trust assets, the Revocable Trusts can be revoked or amended at any time during your life. You also report the Trust income on your individual tax returns as you always have.

Unlike Irrevocable Trusts, since you maintain control over your Revocable Trust assets, the Revocable Trust does not protect your wealth if you required long term care in a nursing home.

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The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.