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Is a Revocable Living Trust a Trust under Agreement

A revocable living trust, also known as a inter vivos trust, is an estate planning tool that can provide many benefits to individuals and families. One common question that arises is whether a revocable living trust is considered a trust under agreement.

The answer to this question is yes, a revocable living trust is indeed a trust under agreement. A trust under agreement is a type of trust that is created through an agreement between a grantor (the person creating the trust), a trustee (the person managing the trust), and one or more beneficiaries (the individuals who will receive the benefit of the trust).

A revocable living trust is considered a trust under agreement because it is created through an agreement between the grantor and the trustee. The grantor typically creates the trust and serves as the initial trustee, and then designates one or more successor trustees to manage the trust in the event of their death or incapacity. The beneficiaries are typically named in the trust agreement and can be changed by the grantor as they see fit.

One of the key benefits of a revocable living trust is that it allows the grantor to retain control over their assets during their lifetime, while also providing for the distribution of those assets after their death. In addition, a revocable living trust can help avoid probate, which can be a lengthy and expensive process.

While a revocable living trust is a trust under agreement, it is important to note that it is not a separate legal entity like a corporation or LLC. Instead, it is a legal arrangement that allows for the transfer of assets into the trust and the management of those assets by the trustee.

In conclusion, a revocable living trust is a powerful estate planning tool that can provide many benefits to individuals and families. It is considered a trust under agreement, and can help avoid probate, provide for the management of assets during the grantor`s lifetime, and ensure the proper distribution of assets after their death. If you are considering a revocable living trust as part of your estate plan, it is important to work with an experienced estate planning attorney who can help guide you through the process.