When you use a revocable living trust as your primary asset transfer vehicle, you have the control. The point of the trust is to make sure that your wishes are carried out after your passing, so you create a trust declaration. In this declaration, you leave behind specific instructions that the trustee must follow after your passing, and you decide when the trust will terminate.
For example, you may want the trustee to distribute all of the assets in the trust to the beneficiaries as soon as possible after your death. Under these circumstances, the trustee would would follow your instructions, liquidate the assets, and distribute the resources. After all these tasks were completed, the trust would terminate, because there would be nothing more for the trustee to do.
On the other hand, a different circumstance could exist. Let’s say that you have one son, and he is not good with money. You could instruct the trustee to distribute the earnings from the trust’s assets on a monthly basis after your passing. Perhaps you could give the trustee the discretion to distribute portions of the principal if certain circumstances were to exist.
It would be possible to instruct the trustee to continue to distribute assets from the trust on a monthly basis to your grandchild after the death of your son. Or, you could leave behind instructions that would compel the trustee to transfer all the assets that remain in the trust to your son on his 60th birthday. The trust could terminate at that time.
These are limited examples, but they should be instructive. As the creator of the trust, you decide when the living trust will terminate.
Living Trust Report
If you are under the impression that you should use a last will as an asset transfer vehicle because you are not extraordinarily wealthy, you may want to look into the value of revocable living trusts. These trusts provide a number of different benefits, and you should understand all the facts before you make any final decisions.
We can help if you would like to learn more about revocable living trusts. Our firm has prepared an in-depth report on the subject, and it is being offered to our readers on a complimentary basis right now.
To get your copy of the special report, visit this page and follow the simple instructions: Free Living Trust Report.
Schedule a Consultation
Written information can be quite useful, but there is no substitute for one-on-one interaction with a licensed professional. Our firm offers free consultations, and we would be glad to assist if you are interested in creating a living trust.
Simply send us a brief message through our contact page to set up an appointment: Grand Forks ND Estate Planning Attorneys.