Revocable Living Trust

A Revocable Living Trust is an arrangement for the management and distribution of your property. Like a Will, it is revocable during your lifetime. Your assets are transferred to the “trustee” who administers the property according to detailed instructions on how the property is to be managed and ultimately distributed. The existence of a Revocable Living Trust, like a Durable Power of Attorney for Financial Decisions, thus may avoid a guardianship proceeding.

Under Washington law, a Revocable Living Trust does not provide to the grantor (the person who created and funded the trust) any protections from creditors. Similarly, a Revocable Living Trust does not protect assets from lawsuits. Protection from creditors, however, is available to others who are the beneficiaries of such a trust.

Nor can a Revocable Living Trust protect your assets in the event that you may need Medicaid Long Term Care benefits.

Nonetheless, a Revocable Living Trust can be a valuable tool. If properly funded with all assets, a Revocable Living Trust avoids probate. And, for those individuals who own real estate outside of Washington, an ancillary probate can be avoided if real estate has been transferred to a trust, saving costs and probate fees.

If you would like to discuss questions about Revocable Living Trusts, please contact us at info@lynnstlouis.com or (509) 468-0551.