Revocable Trust for Single Individual
(Basic)

Summary

This template is a general revocable trust that can be tailored to your state by an unmarried individual with or without adult children. The template is non-jurisdictional and may be modified for a particular state. It is intended for nontaxable estates. This template includes practical guidance, drafting notes, and alternate and optional clauses. This template directs the residuary trust estate to pass outright to the settlor's children and/or other beneficiaries. Note, this template does not include continuing trusts, so it should not be utilized if the settlor has minor children. The distribution provisions may be modified to reflect your client's wishes. A revocable trust (also known as a "living trust" or "inter vivos trust") is typically used as a will substitute to avoid probate. The revocable trust also includes elements of disability planning as assets can be managed by the successor trustee without an adjudication of incapacity. However, because the settlor retains power over the trust assets, revocable trusts do not provide asset protection or estate tax savings. Trusts are generally governed by state law. However, many states have adopted some version of the Uniform Trust Code (UTC), a uniform act promulgated by the Uniform Law Commission to provide uniformity to the law of trusts throughout the United States. Thus, this template's drafting notes mainly refer to related laws under the UTC. A practitioner should refer to the trust laws in the applicable jurisdiction before drafting a trust for a client. In addition to the creation of the trust, the settlor will need to fund the trust with settlor's individually owned assets to avoid probate. To assist your client with funding, once you receive a completed questionnaire, you should provide a checklist and/or letter to help them understand the additional action required to coordinate the estate plan beyond executing the documents. This includes, for example, recording new deeds for real property, updating beneficiary designations, retitling checking and savings accounts in the name of the trust, and more. To ensure that all of the settlor's assets are properly transferred to the intended beneficiaries, a revocable trust should be used together and coordinated with a pour over will. This template is jurisdiction-neutral, and as such counsel should consult and incorporate the laws of the particular jurisdiction. For additional information on trusts, see Characteristics and Uses of Trusts and Requirements and Restrictions on Trust Purposes and Administration. For a 50-state survey that includes information on state trust laws, see Trusts State Law Survey. For general information on trusts, see Estate Planning with Trusts: What Is a Trust? Video, Estate Planning with Trusts: Drafting Fundamentals Video, and Estate Planning with Trusts: Trust Administration Video.