Who owns the Property in a Revocable Trust?
A revocable trust is a trust whereby provisions can be altered or canceled depending on the wishes of the grantor or the originator of the trust. During the life of the trust, income earned is distributed to the grantor, and only after death does property transfer to the beneficiaries of the trust. A revocable trust…
A revocable trust is a trust whereby provisions can be altered or canceled depending on the wishes of the grantor or the originator of the trust. During the life of the trust, income earned is distributed to the grantor, and only after death does property transfer to the beneficiaries of the trust.
A revocable trust is helpful since it provides flexibility and income to the living grantor. Provisions of the trust can be changed, and the estate will be transferred to the beneficiaries upon the trustor’s death.
Who owns the Property in a Revocable Trust?
There are several advantages of establishing a revocable trust. If the grantor experiences health concerns through the aging process, a revocable trust allows the grantor’s chosen manager to take control of the principal. Revocable Trust property is owned solely by the trust. The grantor has no ownership ties to the assets from a legal and financial standpoint.
With a revocable trust, the grantor owns the trust property. Even though an asset may have been retitled into the trust’s name, the grantor must report any income or capital gains from the trust assets on their income tax return, and if they are sued, creditors may come after the revocable trust property.
