While you are alive 'n kicking your revocable trust remains that way. After certain events, that revocable trust becomes irrevocable.
The following is a transcript of the video above:
Hello, Don Rolfe here with Northwest Legal Planning. And today we're discussing when a revocable living trust becomes irrevocable.
So well, by the way, if you have questions about this topic or any other estate planning topic and schedule a time to ask me those questions and learn about estate planning options for you, the quick phone call or in-person meeting for 30 minutes by going to MyEstatePlanMeeting.com.
So when does a revocable living trust become irrevocable?
First, what is a revocable living trust? A revocable living trust is the cornerstone of a trust-based estate plan. And basically what it is is it's a document that, we'll just say it's a bucket where you put all your stuff in it so that if something happens to you, someone else can pick up that bucket later. They're called a successor trustee and they can manage your stuff for you. If you want to know more about what a revocable living trust is in detail, you're free to ask me that question. But right now I'm talking about when that revocable living trust becomes irrevocable.
So while you are healthy and alive and have capacity, your revocable living trust is just as it sounds. It's completely revocable. You could do away with the whole thing. Or you can change it, you can restate it, in total. You can make amendments. Anything that you want to do that document you can do while you have capacity and you're alive.
There's two situations in which that revocable living trust becomes irrevocable and can't be changed any more, can't be taken back.
One of those is if you lose capacity. So if you don't have the capacity to manage your own affairs, to make decisions, to make changes about your trust, your estate plan, you're not going to be able to make any changes to your revocable living trust. So that's situation one.
And the other situation is ultimately what you've created this estate plan for to begin with, is after you've passed away. Your revocable living trust becomes irrevocable. It gets its own, at that point it actually, because you're not even around any more it gets its own EIN number, it no longer uses your social security number, and it becomes its own entity. And it stays the way that you made it. Unless someone sues and a judge decides in their, that that person is correct and a change should be made, which we can never predict if something like that is going to happen, but it does, sometimes. Unless something dramatic like that happens, your trust is the way that you wrote it.
And if you have a trust right now, you want to make sure that you're treating it the right way. So if it's a revocable living trust know that you can make changes to it.
If you have questions about that, again, you can reach out to me and ask me those questions for free by going to MyEstatePlanMeeting.com. And you could right, right on my calendar. You pick the date, you pick the time. There's no emailing back and forth. You just put it on there.
But again, a revocable living trust, which is the cornerstone of a trust-based estate plan rather than a will-based estate plan, is revocable, amendable, you can change anything that you want during your life as long as you have capacity. And then once you lose capacity and no longer able to make those decisions, it becomes pretty much irrevocable. And then once you pass away it becomes irrevocable.
If you have any questions do feel free to reach out to me. Until next time, take care, bye!