A good analogy for a Revocable Living Trust is a box with a list of instructions on the side. The instructions (i.e., Trust Agreement) indicate who is to be in charge of the box (i.e., "Trustee"), and who is to receive anything that is left in the box at the time of your death (the "beneficiaries"). Normally, you will name yourself as the Trustee during your lifetime, and will name someone else to be the Trustee after your death ("Successor Trustee"). The Trust Agreement also sets forth the rules under which the Trust is managed. During your lifetime, you will be in charge of the Trust, and are entitled to receive any benefits from the Trust. This means that you are in charge of managing and spending the Trust assets. After your death, or upon your disability, your Successor Trustee will be responsible for managing the Trust assets in accordance with the rules contained in the Trust Agreement. It is important to remember that a Revocable Living Trust can be either amended or revoked in its entirety. Any amendment has to be in writing, and should be drafted by a qualified estate-planning attorney. You can also add assets to the Trust or remove assets as you wish. Upon your death, the Successor Trustee that you have named in the Trust will manage and distribute the remaining Trust assets according to the directions set forth in the Trust Agreement.
