What is a revocable trust?

Revocable Trusts

A revocable trust is one where usually, grantor/trustee/beneficiary are the same person.

It can be revoked or amended any time until the person's death.

Upon death the trust property bypasses probate and assets are distributed to the heirs.

Clarification

A trust is a right to hold property for the benefit of another. A trustor (grantor, settlor) creates the trust, places the trust property (land, money, stocks, etc.) in the trust and names both the trustee who will hold power over the trust property and the beneficiaries. A revocable trust can be amended or revoked by the trustor at any time during her life.

Be careful with that first statement in the first answer. It is not the definition of a revocable trust. In fact, it is a common trust error. In many states where the grantor, trustee and beneficiary are the same person there is no trust created and the property remains in the grantor's estate. That error can cause serious consequences down the road when the purported trustor dies and the real property must be sold.

First answer by steve shorr. Last edit by Kluss. Contributor trust: 69 [recommend contributor]. Question popularity: 114 [recommend question]