A revocable family trust is a powerful estate planning tool that allows individuals and families to manage and transfer assets with greater flexibility and privacy.
It enables you to control your property during your lifetime and provide terms to ensure a smooth transition of those assets after your death, without the need for the probate process. In short, a revocable family trust is a legal arrangement that allows you to benefit from your assets while also providing for your loved ones, now and in the future.
When you work with us, you receive personalized service directly from an experienced revocable family trust lawyer, not a handoff to junior staff. We serve clients in North Las Vegas, Henderson, Clark County, and the surrounding areas.
Understanding Trusts
Before explaining what a revocable family trust is, it helps to understand the jargon-filled terminology used in estate planning. The following terms appear often in discussions of trusts:
- Grantor—someone who creates and “funds” a trust, also called a trustor or settlor;
- Trustee—a person or institution responsible for managing trust assets and carrying out its terms;
- Beneficiary—a person or people who receive the benefits of the trust property;
- Successor trustee—someone who takes over trust management if the original trustee cannot or will not serve;
- Trust instrument—the legal document outlining the terms of the trust;
- Funding the trust—transferring asset ownership to the trust;
- Pour-over will—a legal document used to transfer any remaining assets into your trust after your death; and
- Probate—the legal process of validating a will and distributing a person’s assets after death.
Each term plays a role in how your estate plan functions and how your assets pass to your heirs.
What Is a Revocable Trust?
So, “What is a revocable family trust?” To answer, we first need to understand revocable trusts in general terms. One of the most consequential distinctions between trusts is the ability of the grantor to undo the trust—its revocability. A grantor cannot cancel or change an irrevocable trust, but can change a revocable trust.
A revocable trust involves a grantor transferring assets into a trust but retaining control as the trustee. As long as the grantor is alive and of sound mind, they can change or cancel the trust at any time, making it revocable.
During the grantor’s lifetime, they typically act as both grantor and trustee, enabling them to:
- Buy and sell property in the trust’s name,
- Make or change investments,
- Move funds between trust accounts,
- Add assets to the trust, and
- Amend or revoke the trust.
After the grantor’s death, or if they become incapacitated, a successor trustee takes responsibility for managing the trust.
What Is a Revocable Family Trust?
A revocable family trust is a specific type of revocable, living trust that benefits family members. The grantor typically names themself the initial trustee, includes themself as a beneficiary, and retains control over the trust and its assets.
What Can You Do with a Revocable Family Trust?
A revocable family trust allows you to establish terms that:
- Delay distributions to children or grandchildren until they reach a certain age;
- Require that funds be used only for specific purposes, such as education, medical care, or housing;
- Stagger distributions over time;
- Appoint a trustee with limited discretion or require co-trustees to act together for oversight; and
- Include provisions for caring for family members with disabilities or other special needs.
You can structure distributions in a variety of ways. For example, you may allow:
- Immediate lump-sum payments,
- Staggered disbursements at specific ages, or
- Discretionary distributions based on need.
Revocable family trusts also allow you to manage and update the trust during your lifetime and provide a clear plan for what should happen if you become incapacitated or pass away.
By tailoring and regularly updating the trust, you can provide for yourself and your loved ones during your life for years afterward.
How Do You Establish a Revocable Family Trust?
Setting up a revocable family trust involves:
- Choosing one or more trustees,
- Identifying beneficiaries,
- Drafting the trust document,
- Funding the trust, and
- Coordinating with other estate planning documents.
A lawyer helps ensure you complete each step correctly and that the trust complies with Nevada law.
Who Can Benefit from a Revocable Family Trust?
You can choose who to name as the trust’s beneficiaries. Common revocable family trust beneficiaries include, but are not limited to:
- Spouses,
- Children, and
- Grandchildren.
The trust is yours to customize. Despite being called a family trust, you can include someone unrelated to you by blood or marriage as a beneficiary, too.
What Assets Can You Put in a Revocable Family Trust?
You can place nearly any kind of asset into a revocable family trust, including:
- Real estate;
- Bank accounts;
- Investment accounts;
- Business interests;
- Personal property, such as jewelry, collections, and vehicles; and
- Life insurance policies naming the trust as the beneficiary.
Although some retirement accounts, such as IRAs or 401(k)s, may not be transferred into the trust, you may be able to list the trust as a beneficiary.
What Are the Benefits of a Revocable Family Trust?
A properly created and funded revocable family trust offers several advantages, including:
- Avoiding probate and allowing your loved ones to receive assets more quickly;
- Not becoming public record and maintaining your and your family’s privacy;
- The flexibility to change trust terms, update beneficiaries, or revoke it entirely; and
- Providing protection for loved ones.
These benefits make revocable family trusts a popular choice.
Revocable Family Trusts in Nevada
Nevada is a trust-friendly state. It has no state income tax, and authorizes:
- Directed trusts, allowing a grantor to separate trust responsibilities among multiple trustees, such as an investment trustee and a distribution trustee;
- Trustees to “decant” or transfer assets from one trust to a new one with more favorable terms; and
- Trusts that last up to 365 years.
These legal advantages make Nevada ideal for creating and maintaining a family trust.
How a Revocable Family Trust Lawyer in Las Vegas Can Help
Setting up a revocable family trust is not as simple as downloading a template and filling in the blanks. Every family’s financial and personal situation is unique, and small mistakes can have significant legal consequences. A common mistake people make is creating a trust but never funding it. In that case, the trust may be legally valid but functionally useless.
An experienced revocable family trust lawyer in Las Vegas can help you:
- Draft a trust that reflects your specific wishes and complies with Nevada law;
- Identify which assets to include;
- Ensure you properly fund your trust;
- Coordinate your trust with your will, powers of attorney, and other estate planning documents; and
- Help you make updates as your life circumstances change.
A lawyer ensures your trust works as intended from the start.
Take the First Step Toward Peace of Mind
At Mills & Anderson, we understand the importance of planning for your family’s future. Our revocable family trust attorneys in Las Vegas have over 60 years of combined experience. When you work with us, you can expect responsive communication, tailored solutions, and direct access to your attorney.
We offer in-person and virtual consultations for clients throughout Clark County and Southern Nevada. If you are ready to create a revocable family trust or want to explore your estate planning options, contact Mills & Anderson today to speak with a revocable family trust lawyer in Las Vegas.
