Gay and Lesbian Living Revocable TrustWhat is a Living Revocable Trust?

A living revocable trust is simply a contract. It is "living because it takes effect while you are alive and it is revocable because you can change or cancel it at any time during your life as long as you are not incapacitated (unable, physically or mentally to manage your affairs).

There are many types of Trusts that can be designed to do many things – for example, if you are wealthy, there are tax avoidance Trusts. If you are disabled and are receiving government benefits (like disability), there are Trusts that will allow you to continue to receive those benefits even if you are the beneficiary of your partner’s estate. The type of Trust included in our packages is the simple, Living Revocable Trust which helps to better protect your non-legally related partner's rights or the rights someone else you choose.

After signing your Living Trust, you continue to own and fully control all of your assets.

A Trust is basically a contract between the Grantor the Grantor is the person who creates and signs the trust and who "funds" it., the Trustee the Trustee is the person who manages the Trust assets (the property that was funded into the Trust by the Grantor), and the beneficiary the beneficiary is the person or persons for whom the Trust was created..

Generally, the Grantor, Trustee and original beneficiary of your Living Revocable Trust is you!

If this seems confusing, we will be happy to explain it to you over the phone at no charge.  Just call 304-796-4045, Monday through Friday, 9:00 am to 4:00 pm Eastern time.

In the Trust, the Trustee agrees to manage the Trust assets in a manner that will benefit the Grantor. After the Grantor’s death, the Successor Trustee (the person you appoint to take your place when you, the original Trustee, become disabled or die) agrees to distribute (give to your beneficiaries) the Trust assets according to the Grantor’s (your) wishes.

In your Living Trust, you name the people and/or organizations (also called your beneficiaries) who you want to receive your assets after you die.

There are several reasons a gay and lesbian person would be better off having a Living Revocable Trust and not just a Last Will and Testament.

For starters, a Trust is a good way to avoid the probate process. More importantly, a Living Trust is less likely to be successfully challenged (Any legal document can be challenged by anyone with a legal right to do so. For example, a legal family member, a medical professional or a court appointed official. That is why Rainbow Law uses language that makes it more likely than not that your documents would survive such a challenge if one were made)by disgruntled family members, etc.

And, your Trust takes effect at the moment it is signed. You live with your Trust (hopefully) for many years before anyone else assumes management. Financial institutions where you have accounts will have become accustomed to dealing with your Trust. So, when your partner (or another person you appoint as your Successor Trustee) “steps into” your shoes as the Trustee of your Trust, no one is surprised or indignant. It should be a smooth and easy transfer.

Contrast this with a Last Will and Testament that does not take effect until you die. We will discuss a Last Will and Testament in more detail in the following chapter.

In short, a Living Trust:

  • permits the smooth, inexpensive transfer of your assets after death, without the court-supervised probate process;
  • makes it easier for your partner and for your family to grieve your loss;.
  • is much less vulnerable than a Will to challenges;
  • courts are less likely to overturn a Trust since you created and lived with it throughout your lifetime;
  • is private (unlike a Will which becomes a public record after you die), thus no one -- except your Successor Trustee and your beneficiaries -- has a right to know how you allocated your assets.

After you create your Trust, to get the maximum benefit and protections from it, you will need to fund (transfer your valuable financial assets and property into it by opening accounts and taking title to property as Trustee of your Trust) your Trust.

Some people feel that the process of funding is just too complicated and too much of a hassle. If you think it is a pain for you to do run around to banks (to close accounts and open new ones in the name of your trust) and courthouses (to record deeds that transfer title from you as an individual to you as trustee of your trust), just think of the problems your partner or other loved ones will have trying to do the same with your property and no proof that you authorized them to do so!

When you are ready to transfer property and accounts into your Trust you will likely need to provide copies of certain sections of your Trust document to your financial institutions. For example, they may want a copy of the cover page since it contains the name and date of the Trust. They may also request the signature page to show that the Trust is valid. And, the bank will no doubt need a copy of the page that appoints your Successor Trustees in order to recognize the person to whom you appointed to manage and settle your Trust.

For property without a title or ownership documentation, your Trust includes a page called “Schedule A” where you will list all of the trust account numbers as well as listing other property that you want to be considered as belonging to your trust.

Each financial institution where you have an account will provide the proper wording to list your trust assets on Schedule A.