Sometimes a living trust is also referred to as a revocable living trust or inter vivos trust. This differs from an irrevocable trust. A revocable trust can be changed at anytime, but an irrevocable trust cannot be changed after it is created.
A living trust in Michigan is a very popular estate planning tool which allows you to easily pass your assets to your heirs privately by avoiding probate court. This differs from a will because a last will and testament requires probate court.
Living Trusts In Michigan Are Flexible.
Sometimes a living trust is also referred to as a revocable living trust or inter vivos trust. This differs from an irrevocable trust.
A revocable trust can be changed at anytime, but an irrevocable trust cannot be changed after it is created.
For example, if you want to remove a beneficiary, this is possible with a revocable living trust, but not with an irrevocable trust.
Flexibility is one of the reasons why living trusts in Michigan are so popular as an estate planning tool.
How Does A Living Trust In Michigan Work?
When you create a living trust, you are known as the grantor or settlor. While you are still living, you also act as the trustee.
This means that you can manage and use all of the assets you place in the trust just like you do now.
When you pass, the successor trustee you named in the trust document will take your place managing the trust.
The successor trustee has a fiduciary obligation to the trust and its beneficiaries. This means they are legally obligated to act in the best financial interest of the trust and its beneficiaries.
As a result, the successor trustee will be required to act according to the strict wishes you outlined in the trust with respect to the management and distribution of the assets.
Who are all of the parties in a Living Trust?
• Grantor
This is the creator of the trust. As state previously, sometimes the grantor is referred to as the settlor of the trust. Only the grantor has the legal authority to change the Trust.
• Trustee
The trustee is the person responsible for managing all of the assets in a trust. While the Grantor is still alive, they act as the Trustee. If they diee or becomes incapacitated, the Successor Trustee takes over.
• Successor Trustee.
A Successor Trustee is named to step in to manage the Trust if the Grantor dies or becomes incapacitated. Often times this is a spouse or close relative that the grantor trusts.
• Beneficiaries.
Beneficiaries are the individuals or the organizations who will receive the assets mention in the Living Trust Michigan if the Grantor dies.
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