Planning for the future often raises important questions, and one of the most common is how to set up a revocable living trust. This tool allows individuals and families in Brooklyn to maintain control of their assets during their lifetime while ensuring a smoother transfer to beneficiaries later. Our NYC trust and estate lawyers at Miller & Miller, assist Brooklyn residents in creating tailored legal structures that support their goals.
What is a revocable living trust, and why do you need one?
A revocable living trust is a legal document that lets you transfer ownership of your assets into a trust while maintaining control over them during your lifetime. Unlike irrevocable trusts, a revocable living trust remains flexible: you can amend or cancel it anytime, provided you are alive and mentally competent.
The trust becomes effective immediately after it is signed and funded. According to the American Bar Association, although the trust technically owns the property, the client—the grantor—typically retains full authority. They can buy, sell, or gift assets as they see fit and may act as trustees and beneficiaries. This setup offers flexibility with almost no difference from owning the assets daily.
Step-by-step guide to setting up a revocable living trust
Understanding how to set up a revocable living trust can feel complex at first, but the process can be broken down into manageable steps:
- List Your Assets: Make a detailed list of the property, financial accounts, and valuable items you want the trust to own. This may include real estate, savings accounts, investments, and personal property.
- Choose a Trustee: You may serve as your trustee initially. However, selecting a reliable successor trustee is vital. This person will step in if you become unable to manage the trust yourself.
- Draft the Trust Document: Work with a trust and estate attorney to create the document. It should outline the terms, beneficiaries, and any specific instructions for asset management.
- Sign the Document: In New York, you must sign the trust in front of a notary public.
- Fund the Trust: This step makes all the difference. You must formally transfer assets into the trust, change titles, update deeds, and inform financial institutions.
- Safeguard the Trust Document: Store the original signed document in a secure location, and inform your successor trustee where to find it when needed.
Creating a trust is not just about signing paperwork—it’s about making sure your legacy is handled the way you intend.
Key benefits of a revocable living trust
According to the Consumer Financial Protection Bureau, a revocable living trust involves three key roles: the grantor (who creates the trust), the trustee (who manages the assets), and the beneficiaries (who receive the assets). The grantor often serves as both trustee and beneficiary during their lifetime, with a successor trustee stepping in when needed.
A revocable living trust provides three key benefits:
- Avoiding Probate: Your assets can be distributed more quickly and privately since they don’t have to pass through the public court system.
- Flexibility: You can update the trust as life changes—marriage, divorce, children, or even shifts in financial goals.
- Continuity: If you cannot manage your affairs, your successor trustee can step in without court involvement.
In a place like Brooklyn, where real estate and family dynamics can be complex, these benefits often make a revocable living trust the better long-term option.
Common mistakes to avoid when creating a trust
While setting up a trust is relatively straightforward, several common mistakes can cause problems later:
- Not Funding the Trust: Without transferring ownership of assets, the trust serves little purpose.
- Choosing the Wrong Trustee: Select someone capable and trustworthy to handle both financial and legal matters.
- Failing to Update the Trust: Life changes fast. Marriage, divorce, births, and deaths should all prompt a trust review.
- Incomplete Documentation: Property titles and financial accounts must reflect the trust’s ownership to avoid probate.
- Lack of Communication: Inform trustees and beneficiaries about the trust’s existence and general contents to minimize confusion.
Taking the time to get it right from the beginning can make a huge difference for your loved ones.
Consult a trust and estate attorney in NYC.
Setting up a revocable living trust isn’t something you must figure out alone. At Miller & Miller, our team helps clients throughout Brooklyn understand their options and craft trusts that protect what matters most. We guide you through each phase, from drafting the document to properly funding the trust.
Ready to talk about how to set up a revocable living trust? Call us today at 718-875-2191 and take the next step in securing your family’s future.
