revocable trust
Changeable inheritance arrangement
A revocable trust is a legal arrangement where assets are transferred to a trustee while the creator retains the power to modify or dissolve it during their lifetime.
Unlike irrevocable trusts, the creator can change beneficiaries, add or remove assets, or cancel the trust entirely.
Revocable trusts are commonly used to avoid probate: She put the house in a revocable trust so it would pass directly to her children.
- grantorOne who transfers rights
- beneficiaryDesignated asset receiver
- settlorTrust's founding party
- inheritanceProperty received from ancestors
- fiduciary dutyObligation to act loyally
legal document · flexibility · estate planning · pour-over will · amendment · asset protection · family wealth · bank account · power of attorney · income tax · tax benefits · succession planning · gift tax · executor · estate · notary · peace of mind · distribute