About Revocable Living Trust

[CindiW]

Jurisdiction

Florida

I need help with terms regarding a revocable living trust. I read that the grantor of the trust is both the trustee and beneficiary. Please explain grantor and what it means to be trustee and beneficiary and how they relate. Thank you.

 

[adjusterjack]

Check any of the following resources for answers to questions about revocable living trusts.

florida revocable living trust at DuckDuckGo

A lot of that may have already been covered in some of your other threads.

 

[Tax Counsel]

I need help with terms regarding a revocable living trust. I read that the grantor of the trust is both the trustee and beneficiary. Please explain grantor and what it means to be trustee and beneficiary and how they relate. Thank you.

I think you misread whatever you were reading. The grantor of the trust cannot also be the trustee and the (sole) beneficiary of the trust. That defeats the purpose of a trust.

However, in simple terms, the grantor of the trust is the one who creates and funds the trust. The trustee is the person designated to manage the trust. The beneficiaries are the ones who will receive the income and/or assets of the trust at some future time.

 

[zddoodah]

I need help with terms regarding a revocable living trust.

There are likely thousands of lawyers in Florida who practice in this area of law.

I read that the grantor of the trust is both the trustee and beneficiary.

It is not uncommon for the same person to be grantor/trustor, trustee and beneficiary of a trust. It doesn't have to be that way, though.

Please explain grantor and what it means to be trustee and beneficiary and how they relate.

A trust is a legal relationship by which one person (the grantor or trustor) vests title (and possibly possession) of certain assets in another person (the trustee) for the benefit of another person (the beneficiary). The bare-bones basics of trusts is a subject that is easily googled.

What are you seeking to accomplish and why?

The grantor of the trust cannot also be the trustee and the (sole) beneficiary of the trust.

I disagree completely. The most common trust created is one in which the same person is grantor, trustee and beneficiary. I review trusts of this sort every day. These trusts provide that, upon the death or incapacity of the grantor, someone else becomes trustee and, upon death of the grantor, someone else (typically the grantor's heirs) becomes beneficiary.

 

[Tax Counsel]

I disagree completely. The most common trust created is one in which the same person is grantor, trustee and beneficiary. I review trusts of this sort every day. These trusts provide that, upon the death or incapacity of the grantor, someone else becomes trustee and, upon death of the grantor, someone else (typically the grantor's heirs) becomes beneficiary.

Then in your example, the grantor is not the SOLE beneficiary of the trust.

 

[zddoodah]

Then in your example, the grantor is not the SOLE beneficiary of the trust.

The OP didn't say anything about a SOLE beneficiary or the lack of a contingent beneficiary. I assumed you were addressing the scenario about which the OP was actually asking.

 

[Tax Counsel]

The OP didn't say anything about a SOLE beneficiary or the lack of a contingent beneficiary. I assumed you were addressing the scenario about which the OP was actually asking.

I was addressing her situation in general. In her post, she says "I read that the grantor of the trust is both the trustee and beneficiary." Read literally, that would indicate the grantor is the sole trustee and beneficiary. I realize that I'm making a very subtle distinction there that most would miss, but since she did not say anything that suggested there were any other beneficiaries, I included the information I did to make her aware that there might be flaw in the trust. The exact trust details are, of course, incredibly important but as I didn't have that I just addressed the issue more generally.

 

[CindiW]

Yeah, well at this point I'm so confused I guess I finally HAVE to see a lawyer. I was hoping I could figure things out by myself, write a nice little will and help my beneficiary to avoid probate, but obviously (sigh and sob) I'm going to have to consult with a lawyer and spend some hard-earned saved dollars. Oh well. In the meantime, however, I will get back to this when I have more time to figure things out, if I ever do. Thank you though, for your responses. I'll explain later what the situation is. So thanks again.