2nd Dec 2012
No. As the creator of the trust, you have 2 powers that give you ultimate control over the Living Trust: The power to amend the trust, and the power to revoke the trust. Also, during your lifetime, as long you have mental competency, you have complete control over the trust as the trustee. This means you can engage in any transaction as the trustee of the Living Trust that you could have engaged in before you established the Living Trust.
There is no change in the way you file your income taxes. Because the trust is revocable, you will file a 1040 return under your own social security number just as you did before the Living Trust was set up.
If you become incapacitated or you pass away, the Living Trust then becomes irrevocable and the successor trustee takes over the administration of the trust. However, you would have lost control upon incapacity or death without a trust; thus, a Living Trust allows for the same control that you had before you created the trust.