The Revocable Living Trust: Control, Flexibility, and Peace of Mind 1 For most rental owners, the first trust they’ll ever need is the revocable living trust. It’s called revocable because you can change it, update it, or cancel it at any time during your life. You remain the trustee and beneficiary, which means you still call all the shots. You manage your rentals, refinance, collect rent, and pay expenses just as before.
FOR MOST RENTAL OWNERS, THE FIRST TRUST THEY’LL EVER NEED IS THE REVOCABLE LIVING TRUST.
Why landlords across the U.S. rely on revocable trusts:
• Avoid Probate Nationwide: Real estate in multiple states often means multiple probates when you die, one in every state where property is held. A revocable trust eliminates that, allowing for a seamless, private transfer of ownership. • Continuity in Case of Incapacity: If you become ill or unable to manage your affairs, your successor trustee can immediately step in with no court approval needed.
• Flexibility: You can add or remove properties, change beneficiaries, or restructure how assets pass to family members or charities.
However, a revocable trust does not provide asset protection while you’re alive. Since you still control everything, a lawsuit or creditor can generally reach trust assets. For landlords dealing with potential tenant disputes or personal guarantees, that’s a major limitation.
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