A Revocable Living Trust is a trust established during your lifetime that can be revoked or changed at any time by you. This type of trust is under the complete control of the person who forms it and is used to manage your property and to provide instructions for how and when those assets should be distributed to your family after your death. If you should become incapacitated or disabled, the trust can also manage your financial affairs

One of the greatest advantages of creating a living trust is the potential to avoid probate and the costs associated with the probate process. All assets that are transferred to a living trust will avoid probate because the trust will be considered the legal owner of the property. Those assets that are not held by the trust at the time of your death can be distributed to your trust via a pour over will.

For persons with significant assets, the living trust is also an essential mechanism to help avoid, decrease and/or delay the estate tax liability associated with a person's death. In 2008, the tax free sum that an individual can pass on is $2 million. This amount increases in 2009, when the tax free sum is $3.5 million. For an individual with assets greater than $2 million dollars a proper estate plan, including the use of a revocable trust, is essential to prevent those assets over the $2 million limit from being taxed at rates approaching 50%. Moreover, because Massachusetts imposes its own estate tax on its residents and only provides a $1 million exemption, persons living in Massachusetts with wealth over $1 million dollars need to strongly consider the use of a revocable trust in their estate plan.