Anchor Law Blog

A revocable living trust is one of the most powerful tools available for individuals and families who want to protect their assets, avoid probate, and provide lasting guidance for loved ones.

But it’s not for everyone.

Let’s explore what a revocable living trust is, what it does, and when it makes sense.

A revocable living trust is a flexible, powerful document that allows you to stay in control of your assets during life, prepare for the possibility of incapacity, and provide for your loved ones in a clear and efficient manner after death. The right estate plan depends on your goals, your family circumstances, and the types of assets you own. That’s why our approach always begins with education and thoughtful analysis so that we, and you, can determine whether a trust is truly in your best interest.

A revocable living trust is, at its core, a legal agreement between the individual (or multiple individuals, in the case of a joint trust for a married couple) establishing the trust. The creator(s) or grantor(s) are legally referred to as the “Settlor(s),” and the person(s) or entity responsible for managing the trust, are known as the “Trustee(s).”Typically, the Settlor(s) and Trustee(s) are the same person(s) during their lifetime(s). The trust is called “revocable” because you can make changes to it or revoke it entirely at any time during your life. It’s “living” because it takes effect immediately, not just after death like a Will. At its core, the trust holds legal title to your property and contains instructions for how that property should be managed and distributed both during your life and after you pass away

What makes the revocable living trust so valuable is the control and protection it offers. You retain full use and control over your assets for as long as you are alive and able. But if you become incapacitated, the successor trustee you have chosen steps in immediately to manage your affairs without the need for a court-appointed conservator. After your death, your successor trustee distributes your assets according to your instructions—privately, efficiently, and often without court involvement.

One of the most common reasons people choose a trust is to avoid probate. A fully funded revocable living trust allows your family to avoid this process, saving time, money, and stress. Your loved ones won’t need to wait for court authorization before paying bills, securing or securing property, or distributing your estate.

Privacy is another benefit. Unlike a Will, which becomes a public record when admitted to probate, a trust remains a private document. Only your beneficiaries and those you authorize will know what your wishes are. This can reduce family disputes and protect your estate from unnecessary challenges.

For families with minor children, a trust can be especially critical. While a Will is necessary to name guardians, only a trust can manage the child’s inheritance beyond age eighteen. Without a trust, Michigan law typically requires that inherited funds be turned over to the child when they reach legal adulthood, even if they are not ready to manage that responsibility. A trust allows you to delay and control distributions until your child is older or more financially mature.

Revocable living trusts are also useful in more complex family situations. For instance, in blended families, trusts can balance the interests of a surviving spouse with the needs of children from a prior marriage.

For married couples, revocable living trusts can also support tax planning strategies. Trusts can also be helpful in protecting family cottages, investment properties, or legacy assets.

Of course, not every person needs a trust. If you are a single senior with modest assets and your goals are straightforward, joint ownership and beneficiary designations may accomplish what you need. But if you want to exercise post-death control, or if you have loved ones who need guidance or protection, then a trust is the only way to ensure your wishes are followed in the way you intend.

Setting up a trust is only the first step. For the trust to be effective, it must be properly funded. This means transferring ownership of your assets (such as real estate, financial accounts, and personal property) into the trust, or naming the trust as a beneficiary where appropriate. Anchor Bay Law assists clients with the funding process to make sure their plan works when it matters most. We also take time to educate you on how to manage the trust going forward and how to update it when life changes.

Although revocable trusts provide significant advantages, they are not without drawbacks. They require more effort and upfront cost than a simple Will, and they do involve ongoing attention to keep the trust properly funded. Trusts also come with administrative responsibilities that may be unfamiliar to your chosen successor. We help our clients weigh these pros and cons carefully before making a recommendation.

Choosing the right trustee is a critical decision. Often, clients name a family member, such as an adult child, but this isn’t always the right fit. A trustee should be someone who is honest, capable, and willing to carry out your wishes. In some cases, a corporate trustee or professional may be more appropriate, particularly where family conflict is a concern.

No two trusts are alike. The document should be tailored to reflect your goals, your family, and your values. Whether you are concerned about a child’s financial habits, trying to plan around government benefits, or simply want peace of mind that your estate will be managed privately and efficiently, Anchor Bar Law can help design a plan that’s right for you.

We also understand that many clients want to learn more before making a decision. That’s why we place a strong emphasis on education and clear communication. We explain legal concepts in plain language, offer examples and visual aids, and provide practical guidance every step of the way. A revocable living trust is a powerful estate planning tool, but only when used thoughtfully and correctly.

If you're wondering whether a trust is right for you, we invite you to contact us for a consultation. We’ll review your specific situation, discuss your goals, and help you decide whether a revocable living trust is the best foundation for your estate plan.