Richard Morgan, Morgan and DiSalvo, another one of our Back to the Basics newsletters.

The topic today is going to be utilizing Revocable Living Trust as part of your overall estate plan. As we talked about in other videos, you have a base estate plan and that base estate plan will include a financial power of attorney to handle financial affairs while you’re alive. If you need assistance, you appoint an agent to assist you. An advanced directive for healthcare where you appoint an agent to assist you with medical related or healthcare related issues. Then you have a will – that’s what happens to my stuff when I die – it appoints guardians for children and things like that. Then, you may or may not have something called a Revocable Living Trust – that may be your primary estate planning document.

Like other trusts, a Revocable Living Trust is like a three party contract. There are three parties. You are the creator. You are in control as the trustee and you are the beneficiary while you’re alive. If you become incapacitated while you’re alive, your successor trustee, that you appoint in the document, takes over and handles your affairs on your behalf. Upon your passing it acts kind of like a will outside the probate process and says – here’s what happens to my stuff when I die. We’re going to do several more videos on Revocable Trusts, as to why you may or may not want to use them.

Richard Morgan Morgan, Morgan and DiSalvo.