Distribution of Assets

Once executed, the Revocable Living Trust is the document that provides for the distribution of assets either at death or through trusts administered by a successor trustee after the death of the Grantor.

Through transfer and allocation of assets, the Revocable Living trust becomes the owner of all of the Grantor’s assets. Asset allocation and funding documents are used to make the revocable living trust the owner and/or beneficiary of assets.

Examples of asset allocation and funding documents are Deeds, assignments, beneficiary forms and bank account cards. A Revocable Living Trust is a contract between you, for yourself. A trust is nothing more than a set of written instructions.

To create a legal trust requires three “players”, a Grantor, Trustee and Beneficiary. A Grantor is a fancy name for the person who is creating the trust. The Trustee is the title given to the person who holds what is in the trust. A Beneficiary is the name given to the individual(s) who benefit(s) from what has been put in the trust that the Trustee currently holds.

In the case of a Revocable Living Trust, the person establishing the trust represents all three players, because he or she is the Grantor, Trustee and Beneficiary during his or her lifetime. As Grantor, Trustee and Beneficiary of a Revocable Living Trust, an individual has complete and total control over their assets just like they did before they created the trust. Think of a Revocable Living Trust as a clear glass of water that an individual holds in his hand. The clear glass is the Revocable Living Trust and the water represents the individual’s assets. The individual can see the water at all times. If the individual wants to take a sip from the glass, or pour the water on the floor, or give it to someone else, he can do so without anyone’s permission.

The Certificate of Trust provides proof of the existence of your Revocable Living Trust. Give a copy of the Certificate of Trust to banks, investment companies, etc. as proof of your trust. The Bill of Gift serves to transfer personal property to the trust. The Directive to the Trustee provides a way to pass heirlooms and specific personal property to certain people who you want to receive them. The Authorization to Disclose Medical Information provides authority for your successor trustees to obtain your medical information and records should they be needed.