A Revocable Trust: When You Don’t Know What to Do
Everyone has heard that they should get their estate in order. Everyone recognizes the wisdom in this. Even if they do not fully grasp the specific nuances, most people have a vague understanding the inheritance will come easier if a last will and testament and other estate building tools are employed.
However, when push comes to shove it can be exceptionally difficult to set inheritances in stone. Maybe you have several children all clamoring for the same resources, or sentimental items. Maybe your death and subsequent bequeathments will have a massive impact on businesses and family relationships. Even though we understand the logic, or wisdom, of recording our last wishes prior to our death – actually putting pen to paper and committing to how certain items or resources will be bequeathed can be a daunting – even dreaded – task.
But what if your decisions didn’t have to be irrevocable and permanent, necessarily?
Enter: The Revocable Trust
What is a Revocable Trust?
A revocable trust is an estate planning tool. The revocable trust allows you to place assets into the trust during your lifetime, and you can modify – even terminate – the trust throughout your lifetime ( so long as you are not incapacitated.)
There are many types of trusts, all of which function within their own frameworks and rules. A unique benefit of the revocable trust is that people change. Priorities change. You may not know for certain how you really want to disburse your legacy. A revocable trust is a potential solution for all of these situations. This is because in a revocable trust the trustee retains the power to access the assets placed in the trust. The trustee can change the terms, even terminate the trust entirely, so long as they are not incapacitated.
Revocable Trust Examples
Let’s consider the function of the revocable trust through a couple of examples. Remember, these examples are general, and used simply to illustrate one point concerning revocable trusts. To discuss important nuances and for advice on your own case, contact an esteemed wills & probate attorney at Suncoast Civil Law.
Example 1
In 1920, railroad tycoon (Stan) wants his amassed fortune to be a source of generational wealth for his only son, Fred, and Fred’s children. Stan detests Fred’s wife – Lois. In 1925 Fred dies in a tragic accident while Stan remains alive. Fred’s last will and testament leaves the entirety of his estate to his wife, Lois.
Provided that no outside issues concerning child inheritance apply, what might happen in the following scenarios?
- In 1920 Stan creates a non-revocable trust and places one million dollars into the trust, to be inherited by Fred.
In this scenario, Stan likely cannot take the bequeathment back after Fred pre-deceases him. Due to the irrevocable nature of the trust, even though the intended recipient is gone, that asset is out of the Trustee’s hands. The inheritance rights will pass in accordance with Fred’s last will and testament. The trustee cannot simply take that bequeathment back.
- In 1920 Stan creates a revocable trust and places one million dollars into the trust, to be inherited by Fred.
In this scenario, the trustee has a choice. Because the bequeathment was placed in a revocable trust, the trustee can change the terms of who is to inherit now that Fred has died. Because Stan wanted his wealth to be generational, this means he could change the terms to make it so Fred’s children will inherit the money when they reach a certain age (for example.)
Fred no longer has a bequeathment in the trust, so there is no bequeathment for Lois to inherit.
Again – it cannot be overstated that the above is a simplified example. While these examples show the essence of how a revocable vs. non-revocable trust could work in action, in a true-world scenario there would be additional legal considerations. An esteemed wills & probate attorney can help you to understand all of the nuances you could face in your own case.
Contact Suncoast Civil Law
Wills & probate law is not only complex – it is monumentally important. The wellbeing of families, friends, businesses, and legacies often fully depend on Testators making sound decisions on how they build their estate plan. Contact our office to speak with our experienced team of Sarasota wills & probate attorneys at Suncoast Civil Law. We can help to ensure that you fully understand how to navigate your next best steps.
Sources:
floridabar.org/public/consumer/pamphlet028/
thinkadvisor.com/2025/01/16/how-to-bulletproof-a-will-with-a-no-contest-clause/