REVOCABLE LIVING TRUST
A Trust is a legal person that you create with a written document. The trust then holds title to whatever property you transfer into it. It is called revocable since you can revoke it at any time. With this type of trust you still control your property while you are alive and upon your death your property will go as you specify in the trust. You may revoke or change the terms of this trust at any time.
This Trust generally avoids the need to probate a Will since you specify in the trust who will receive your property on your death.
Even though a Will may not be needed, one is usually prepared to make sure that any property that you did not place in the trust will find its way into the trust upon your death. This a called a Pour Over Will.
This trust avoids the risk of a Court intervening in your affairs if you become disabled and appointing a stranger to manage your affairs. Although this can be avoided by preparation of a Durable Power of Attorney.
The trust will automatically transfer all real estate which you own regardless of which state it is located. This avoids the cost of an ancillary probate proceeding.
While this type of trust can be changed by you at any time, it does not protect your property if you become severely disabled and require long term care. It does not save you Federal Estate taxes. It is more costly to create then preparing a Last Will and Testament which for most people can accomplish the same objectives at a fraction of its cost.