A Power of Attorney is a legal power or right, designated in a document that is created by a person who wants another person to take over some of his or her legal decision-making. The words “Power of Attorney” refer to both the legal power and the document that creates that power. The person who gives the power is the “Principal”, and the person who receives that power and who can exercise that power on the Principal’s behalf is called the “Attorney-in-Fact”.

A Revocable Living Trust and a Will are similar in that they both spell out who is to inherit assets from people after they are deceased, and they work well together to ensure people’s estate plans meets their needs, but they are different in a few important ways.

Many people have heard about Revocable Living Trusts (RLTs), but not everyone understands the actual reasons and benefits behind having one. Understanding the benefits of Revocable Living Trusts is the best way to identify whether a Revocable Living Trust is right for you. RLTs are not the same as Irrevocable Living Trusts, Charitable Trusts, or Qualified Terminable Interest Property (QTIP) Trusts.

A Revocable Living Trust document, such as those drafted at our law firm Leigh Cowden PLLC, creates a legal entity that will hold title to your assets (property, car, bank accounts, stocks and other securities, etc.) “in trust for” or “for the benefit of” you and anyone else you designate. Those assets can be used and managed as you determine while you are alive, and will be distributed to beneficiaries as you designate upon your death. This entity will have its own tax identification number and it will file its own tax return.