Trustor and trustee enter into an agreement to create a revocable living trust. The purpose of the creation of the trust is to provide for the convenient administration of the assets of the trust without the necessity of court supervision in the event of the trustor's incapacity or death. Other provisions of the trust document include: trust assets, disposition of income and principal, and administration of the trust assets after the death of the trustor.
A Connecticut Living Trust — Revocable is a legal document that enables individuals to protect and manage their assets while they are alive and also ensures a smooth transfer of those assets upon their death. Living trusts are popular estate planning tools in Connecticut due to their flexibility and ability to avoid the probate process, which can be time-consuming and expensive. Living trusts in Connecticut can be further categorized into different types based on their purpose, such as: 1. Revocable Living Trust: As the name suggests, a revocable living trust can be altered, modified, or revoked at any time during the granter's lifetime. This type of trust provides flexibility and allows the granter to retain control over the trust assets. 2. Irrevocable Living Trust: In contrast to a revocable living trust, an irrevocable living trust cannot be changed or revoked once it has been established. The granter transfers their assets into this type of trust, effectively removing ownership and control. The primary advantage of an irrevocable living trust is that it provides additional asset protection and potential tax benefits. 3. Testamentary Trust: While not technically a living trust, a testamentary trust is created through a person's will and only goes into effect after their death. It allows individuals to control the distribution of their assets and provide for their loved ones in a structured manner. 4. Special Needs Trust: This type of living trust is designed to provide financial support and management of assets for beneficiaries with disabilities or special needs. A special needs trust ensures that the funds do not interfere with any government benefits the beneficiary may receive. 5. Charitable Remainder Trust: A charitable remainder trust is utilized for philanthropic purposes, allowing individuals to transfer assets to a trust while retaining an income interest for themselves or designated beneficiaries. This type of living trust can provide tax advantages and support charitable causes simultaneously. It is important to consult with an experienced estate planning attorney or financial advisor when considering a Connecticut Living Trust — Revocable or any other type of trust, as they can provide personalized advice and ensure that the trust aligns with one's specific needs and goals.
