Richard Morgan, Morgan and DiSalvo, another one of our back to the basics newsletters.
The topic today is going to be on utilizing a 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, your point agent to assist you. An advanced director for healthcare where you’re appointed 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. Appoints guardians for children, things like that. And then you may or may not have something called a revocable living trust. And that may be your base, your primary estate plan document.
Like other trusts, a revocable living trust is kind of 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. And the way it works is, if you become incapacitated while you’re alive, your successor trustee that you appointed the document, takes over and handles your affairs on your behalf. And then upon your passing, 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 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.