A revocable living trust is a written agreement that places some of your assets under the control of a trustee according to terms you establish. Typically, you can name yourself as one of the trustees allowing you to manage the trust assets while you live. Because the trust is revocable, you can amend its terms or dissolve it as long as you remain mentally competent.
If you become mentally incompetent, the assets in the trust may be managed by another trustee or a successor trustee, depending on state law. After your death, the trustee (or trustees) will distribute the assets according to the trust’s instructions. That is, unless you have provisions for the trust to become irrevocable.
Irrevocable trusts are fully managed by trustees. Once assets are transferred to an irrevocable trust, you no longer own those assets; the trust does. A revocable trust becomes irrevocable upon your death, but you can also establish an irrevocable trust while you are still alive for specific legal or tax purposes.
How to create a revocable trust
Creating a revocable living trust typically involves several steps, including:
- Deciding who will serve as trustee and successor trustee
- Identifying beneficiaries and outlining how and when they will receive distributions
- Opening the trust and formally transferring assets into it by retitling accounts or property
A living trust must be funded; otherwise, it will not fulfill its legal and financial purposes.
It can hold various types of assets, including:
- Cash and bank accounts
- Nonretirement investment accounts
- Stocks and bonds
- Personal property such as jewelry, artwork, and collectibles
- Vehicles
- Businesses
- Land and real estate
Certain assets — including retirement accounts and funds held in health savings accounts, medical savings accounts, or flexible spending accounts — should typically not be placed in a living trust.
Because proper drafting and funding are essential, it’s wise to work with an estate planning attorney to create a revocable living trust. An attorney will help ensure the trust complies with state law, assets are correctly retitled, and the trust is tailored to your family and financial circumstances.
We can help you cover all your bases as you prepare to create a living trust. To get started, send us a message or call our Sonoma County, CA estate planning office at 707-769-9975.
- What Is a Living Trust? - August 3, 2026
- A Basic Guide to Trusts in Estate Planning - July 31, 2026
- Don’t Outlive Your Money: Planning for Longevity Risk - July 27, 2026
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