A revocable living trust is created through the grantor's signature on a living trust document and the transfer of all property into the name of the trust, according to Nolo. The grantor is the individual for whom the trust is created. Grantors can create trusts themselves or through an attorney.Continue Reading
A standard living trust includes the name of the grantor; the name of the person who is responsible for the trust, known as the trustee; the names of beneficiaries, who are the individuals who receive property upon the guarantor's death; and the names of people appointed to manage property inherited by minors, if applicable, according to Nolo. In the case of a revocable living trust, the trustee is typically the grantor until the grantor's death. At this point, a trustee named in the living trust takes over the management of the trust.
Unlike a will, which is subject to probate and court supervision, a living trust transfers property to the beneficiaries without a drawn-out legal process, Nolo explains. A living trust is considered by many to be the most efficient way to transfer large items such as homes to beneficiaries upon the grantor's death. However, a living trust cannot address certain matters a will does, such as naming a guardian for a minor child.Learn more about Financial Planning