Quora Answer: Can I Set Up My Own Revocable Trust?

The following is my answer to a Quora question: “Can I set up my own revocable trust?” 

If you have enough funds or assets, and are concerned about the distribution of your estate, it is worth your while to consider setting up a revocable trust.  A revocable trust is not a distinct legal entity, and does not protect you from creditors, or legal action against your assets, since they are still vested with you.  The purpose of a revocable trust is to avoid probate when you pass away, since it becomes a testamentary trust upon your demise.  A testamentary trust is an irrevocable trust. 

Setting up a revocable trust is easy.  You could get a corporate secretary, or a lawyer to set one up, and there is a standard trust document.  This document may be amended as and when required, to better reflect your needs and requirements.  Since the trust is revocable, you have full control over your assets, and may dispose of them as you wish. 

Because this is a trust, it is a distinct legal entity when it comes to the disbursement of your estate.  The advantage is that you may spread the disbursement over a period of time, even across generations.  You may stipulate that the trustees invest the assets, and give some of the proceeds to specific beneficiaries.  You have a means to ensure that your beneficiaries do not dissipate their inheritance because they do not know how to manage a windfall.  If these are your concerns, and you have substantial assets in your estate, then this is the option for you.