Page 24 - Ultimate Guide to Estate Planning Third Edition_Neat

Again, we refer to the important process of
retitling assets as “funding” the trust. Think
of the trust as a bucket. Assets in your name
(i.e. vehicles, homes, checking accounts, etc.)
are retitled/renamed as assets of the
revocable living trust. By retitling the asset,
you are placing it in the revocable living trust
bucket and having the rules set forth in the
revocable living trust take effect as to those
assets.

Unlike a will, which only becomes effective
upon your death, your trust is immediately
effective. It can also be changed by you at any
time. Ordinarily, you are the grantor (the
person creating the trust) and normally act as
the initial trustee for the beneficiaries
(persons identified to receive benefits from the
trust). The initial beneficiary is generally you,
the grantor.

The trust establishes rules by which assets
will be invested, managed and distributed.
You can think of this as putting a lid on top of
your revocable living trust bucket and a faucet
at the bottom of your revocable living trust
bucket. By establishing rules for investing

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