Definition of Revocable trust:
Type of trust in which the grantor retains the right to revoke it, and reclaim the property placed in it.
A revocable trust is a trust whereby provisions can be altered or canceled dependent on the grantor or the originator of the trust. During the life of the trust, income earned is distributed to the grantor, and only after death does property transfer to the beneficiaries of the trust.
A revocable trust is helpful since it provides flexibility and income to the living grantor (also called the trustor). Provisions of the trust can be changed, and the estate will be transferred to the beneficiaries upon the trustor's death.
How to use Revocable trust in a sentence?
- Revocable trusts let the living grantor change instructions, remove assets, or terminate the trust.
- Revocable trusts allow beneficiaries to avoid probate court and guardianship or conservatorship proceedings.
- Irrevocable trusts cannot be changed; assets placed inside them cannot be removed by anyone for any reason.
- However, revocable trusts have upfront costs, involve many steps to fund, and don't exempt the owner from needing a will.
- Trusts are created by individuals assigning a trustee to manage and distribute the assets to the beneficiaries after the owner's death.
Meaning of Revocable trust & Revocable trust Definition