If you have a revocable living trust in place, you can continue to control the assets while you are alive and well. At first, you can act as the trustee. The trustee is the person who administers the trust. As the trustee you would control the actions of the trust throughout your life.
The beneficiary of the trust receives monetary distributions from it. You can initially act as the beneficiary as well.
The eventual goal is to facilitate asset transfers to your loved ones, so you name a successor trustee to assume the role after your passing, and you name successor beneficiaries.
Who should you choose to act as the successor trustee?
You could name someone that you know to act as the trustee of the revocable living trust after you pass away. However, there can be some drawbacks if you go this route.
First of all, do you know anyone who has experience administering a revocable living trust? Even if there are people that you trust, they may not have the appropriate experience.
There is also the matter of longevity. You should have the revocable living trust in place many years before you actually pass away. If you use someone that you know to act as trustee, you would probably pick someone who is mature. Will the trustee be alive and well at the time of your passing? Will the trustee pass away shortly after you do?
Another drawback would be the potential for conflicts of interest. If the trustee that you choose has an interest in the estate, there could be conflicts.
To avoid all of these potential drawbacks you could choose to utilize a corporate trustee, like a trust company or the trust section of a bank. When you use a corporate trustee you do not have to worry about experience, because professional fiduciary entities thoroughly understand the way that a revocable living trust should be administered.
There would be no conflicts of interest, and longevity would not be a factor. The corporation is going to have internal oversight, and this is another positive.
Ultimately, the choice is yours, and will depend on your circumstances and options available to you.
Learn More About Revocable Living Trusts
We have provided a few tidbits of information in this post. If you would like to learn more about revocable living trusts, download our in-depth report on the subject.
This special report is being offered on a complimentary basis, and you can click this link to obtain access: Campbell CA Living Trust Report.