A Revocable Trust is an instrument which allows you to hold and distribute your property privately and without court oversight. You may choose to fund your trust with your assets during your lifetime or you may wait until your death to fund the trust.  During your lifetime, you have total control of the trust and may take distributions of income and principal due to the fact that you are both the settlor and trustee. At anytime you may revoke the trust at anytime prior to your death.  Also, your trust will be treated as your own property for income tax purpose and no additional taxes will be due or tax filings will be needed.

Once you die, your trust becomes irrevocable and will be funded with your residuary estate pursuant to the “pour over” provision of your will.  You choose your trustee and give your trustee powers to effectuate your goals and wishes.  Your spouse will benefit from your trust because your spouse is allowed to receive the income generated by the trust and will be allowed to use trust funds for most needs.

Among the many benefits of your trust is the establishment of subtrusts to maximize both Federal and state tax credits and to meet particular needs and goals. A subtrust known as a family trust will be funded at the maximum amount allowed to pass free of both Federal Estate taxes and state estate taxes.  Your remaining estate with then pass estate tax free to a marital trust until the death of your spouse.  Finally, you may have any number of subtrusts to meet a particular need or goal.


You can find more information on a Revocable Trust at the website of Matthieu J. Massengill, P.C..


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