A revocable living trust can accomplish a variety of goals. You can provide for continued management of your financial affairs during your lifetime, at your death and even for generations to come. Your revocable living trust avoids probate and reduces the chance that personal information will become part of public records.
Every trust has three important components. The grantor (or settlor) -- generally you -- creates the trust and transfers assets to it. The beneficiary (ies) -- often you and your family -- receive the income and/or principal of your trust according to its terms. The third component, a trustee -- who could be you, a family member or a corporate trustee -- manages the trust assets.
You can change a revocable trust's provisions at any time during your life. If you act as your own trustee, you continue to manage your investment and financial affairs. In this case, your account might be titled "(Your Name), Trustee of the (Your Name) Revocable Living Trust Dated (Date)." Because this legal entity exists beyond your death, property titled in the trust does not need to pass through probate.
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).