How does the Living Trust Agreement Work?

Example 1. You, as a single unmarried person, as grantor, provide in a revocable living trust agreement that all or a part of your assets are declared to be held by yourself and a third party as Co-Trustees, for the benefit of you as the grantor during your lifetime, and upon your death, to go to the beneficiaries designated in the agreement. Immediately upon your death, all legal interest in all property automatically reverts to the Co-Trustee, as the sole trustee, to be transferred as directed by you as the grantor in the agreement. If the beneficiary is an adult, he or she could be the Co-Trustee, and upon your death, he or she would automatically have title to the property for himself or herself.

Example 2. You and your spouse, as a married couple, can provide in a revocable living trust agreement that all or part of your assets are declared to be held by you as Co-Trustees, for your benefit during your lifetimes, and upon death of either of you will go to the surviving spouse, or in the event of simultaneous deaths will go directly to designated beneficiaries. Immediately upon the death of either spouse, all legal interest in all the property automatically reverts to the surviving spouse, as sole trustee, free and clear from any probate processes or other court delays. The surviving spouse then has the option to place the assets in another revocable trust with an adult child or other family member as Co-Trustee and avoid probate again and again.