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A revocable trust is a kind of trust where the creator is allowed to modify it or make changes to it. The creator may also be able to take back all the property that is placed in the trust if need be. The creator may have all the rights to the property. The property is called the settler’s property even after it is transferred to the trust. Read below to find more Expert answers pertaining to Revocable Trust.
It may not be possible to put a Roth IRA into a revocable trust. However, a person may make the revocable trust the beneficiary of the Roth IRA on their death. All the money that is distributed to the trust from the IRA will be tax free if the IRA contributions meet the 5 year requirement at the time of the person’s death.
If the trust is created in the state of Texas, then it may be possible to modify it and add the trustees as the beneficiaries as well unless there is a clause in the trust that prohibits the change. Only the creator of the trust may make the changes to it with the help of the attorney who drafted the trust.
In many situations, it may be possible to name a trust as a beneficiary of a deposit account.
It may be possible to put a house with a mortgage on it in a revocable trust. Though the title of the house will be placed in the trust, the owner of the house will be liable to make the mortgage payments. One may take the help of an attorney to draft the trust and place the house in it.
In most situations, the beneficiaries of a trust may not be responsible for any of its obligations and liabilities. The trustee and the owner however, may be responsible for any obligations or liabilities that a trust may have. The trustee’s liabilities may be limited to the value of the assets held in the trust.
It may be legal to keep the assets of a trust confidential from its beneficiaries. It may be kept within the constraints of the trust document. The assets may be known to the beneficiaries only after the death of the creator during the probate process.
Once the creator of the trust dies, the trustee manages and distributes the property that is placed in the trust according to the instructions given in the trust document.
Revocable trusts may be a preferred choice of many people who want to place their property in trusts as they allow the creator to modify or make changes to it. The rules and regulations that govern revocable trusts may differ in different parts of the U.S. Hence, though easy to create and maintain, you may have questions regarding these trusts depending on the state that you live in. You may consult an Expert if you have any clarifications about these trusts or need any questions about them answered.