A trust whose terms and provisions can be changed, modified, altered, amended, or revoked. The power to do all this is usually reserved by the person who created the trust, (the grantor, settlor or trustor) but sometimes the power may be given by the creator to a second person. The revocable trust is popular as a means of avoiding probate and as a substitute for a will. The revocable trust is often used for elderly people to protect themselves and their assets from the expense and delays of conservatorship.
A trust that can be changed after it is established. Assets can be added or removed from the corpus of the trust, the beneficiary(ies) can be changed, and other changes including termination of the trust, are allowed.
An inter vivos trust that is subject to amendment or revocation by the grantor or settlor. Primarily used to avoid probate upon the grantor's death, guardianship and conservatorship actions during the grantor's lifetime, and to maintain the grantor's privacy both during the grantor's lifetime and upon the grantor's death. Usually contains the same provisions as a will for the disposition of the grantor's estate upon the grantor's death.
A trust that can be revoked at any point in time, while the grantor and trustee is alive. Revocable trusts are designed to avoid probate. Some also help reduce estate taxes, while others set up long-term property management. (Source www.nolo.com)
The grantor retains the right to all trust income, an unlimited right to withdraw property from the trust and a right to terminate the trust if he or she chooses. Because the grantor maintains these rights, he or she is taxed on trust income; no gift has been made for gift tax purposes, and the property will still be included in the grantor's estate for estate tax purposes.
A trust that may altered as many times as desired in which income-producing property passes directly to the beneficiaries at the time of the grantor's death. Since the arrangement can be altered at any time, the assets are considered part of the grantor's estate and they are taxed as such.
A trust in which the grantor reserves to himself the right to revoke. The provisions of such a trust may be altered as many times as the grantor pleases, or the entire trust agreement can be canceled, unlike irrevocable trusts. The grantor may receive income from the assets, but the property passes directly to the beneficiaries at the grantor's death, without having to go through probate court proceedings. Since the grantor retains the right to change or revoke the trust, these assets are considered part of the grantor's estate at time of death and will not escape estate taxes. This kind of trust differs from an irrevocable trust, which permanently transfers assets from the estate during the grantor's lifetime and, therefore, escapes estate tax.
A trust in which the donor retains income rights, as well as the right to terminate the trust and recover the property. Such trusts will eliminate probate costs and may also qualify for estate tax marital deduction.
A revocable trust or "living" trust is a trust designed to dispose of the decedent's assets at the decedent's death in order to avoid the probate process. It is a very effective will substitute and particularly useful in jurisdictions that have a complicated and burdensome probate process, such as Maryland and Virginia.
A trust whereby provisions can be altered or cancelled dependent on the grantor. During the life of the trust, income earned is distributed to the grantor, and only after death does property transfer to the beneficiaries.