A revocable living trust is an arrangement you make for management and distribution of your property. Like a will, the trust is “revocable,” meaning that you can modify or eliminate it at any time. Any competent adult can establish a revocable living trust. Husbands and wives can establish a trust together, and can provide that their community and separate property assets be held in different accounts.
The revocable trust is established by a written agreement or declaration which appoints a “trustee” to administer the property, and which gives detailed instructions on how the property is to be managed and eventually distributed.
This is simply a trust created in your will which operates in a similar way to a discretionary family trust. When considering the terms of your will, you should consider the benefits of using a testamentary trust especially if you have young children or significant assets.
If a beneficiary is unable to properly manage his/her own affairs, the trust is useful as some person other than the beneficiary controls it. The trustee can ensure that sufficient funds are available to meet the needs of the beneficiary but the beneficiary does not get control of the assets. The trust can actually protect your hard earned assets from the beneficiaries themselves, for example from spendthrift or immature children.