The grantor, trustee and beneficiary may be the same person. In this example, a second person must be named as a contingent beneficiary. Jane named her daughter to be the contingent beneficiary at time of death. Also Jane appointed a successor trustee, her Anytown Bank, to manage the funds in the event of her incompetency. Emma spelled out in her living trust how she wanted her assets managed and named her daughter as beneficiary of the trust at the time of death.
Trusts are sophisticated tools and require the guidance of an attorney experienced in elder law.
A revocable living trust allows you to change the terms of the trust in case you change your mind. A power of attorney becomes void on your death, but a trust need not. A trust provides you with an alternative to passing property. A living trust names the beneficiaries who will receive the assets at time of death, and as a result, the trust fundbalance avoids probate proceedings. However, the trust's beneficiaries may be liable for taxes and debts left by the 's decedent.