Revocable Trust

A revocable trust (sometimes called a living trust or revocable living trust) is a legal entity that holds assets on behalf of a named beneficiary, typically the person who created it. Because the creator (called the grantor) can take back control or change the terms at will, it functions less as a wealth-transfer tool and more as an administrative framework for managing and eventually distributing assets.

For families working through substantial wealth, a revocable trust is most valued for what happens at death: assets held inside it pass to heirs without going through probate, the public court process that validates a will. Probate can be slow, costly, and visible to anyone who looks; a revocable trust keeps the transfer private and efficient.

Consider a hypothetical family whose patriarch owns real estate in three states. Without a revocable trust, each state would require its own probate proceeding. With one, a named successor trustee steps in immediately, following written instructions. A common confusion is that a revocable trust provides asset protection or estate-tax savings; it does not, because the grantor still controls the assets and they remain part of the taxable estate. A qualified attorney must evaluate any particular family's situation.