LawMeaning

Revocable Trust

Also known as: Living Trust

In one sentence

A trust that the grantor can modify, amend, or terminate during their lifetime.

Plain English

A revocable trust (often called a living trust) allows the grantor to maintain control and flexibility. The grantor can change beneficiaries, modify distribution terms, add or remove assets, or dissolve the trust entirely at any time. Because the grantor retains control, the trust assets are still part of the grantor's taxable estate. The main benefit is avoiding probate—assets in the trust pass directly to beneficiaries without court involvement when the grantor dies.

Ad slot

Example

Patricia creates a revocable living trust and names herself as trustee. She transfers her house and investment accounts into it. If her circumstances change, she can modify the trust to name different beneficiaries or add her new vacation property. When she dies, her assets pass to her named beneficiaries without probate.

Used in a sentence

“A revocable trust provides flexibility during life but does not reduce estate taxes like an irrevocable trust does.”

Related terms

Irrevocable Trust
A trust that cannot be changed, modified, or terminated once created without beneficiary consent.
Grantor
The person who creates a trust and transfers property into it.
Trustee
The person or institution legally responsible for managing assets held in a trust.
Beneficiary
A person or organization entitled to receive money or property from a trust, will, or insurance policy.
Trust Instrument
The legal document that creates a trust and outlines how assets will be managed and distributed.
Probate
The court process of validating a will and distributing a deceased person's estate.
Intestate Succession
The legal process of distributing a deceased person's property when they leave no valid will.
Elective Share
A surviving spouse's right to claim a portion of the deceased spouse's estate despite the will.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.