A Revocable Trust gives the person creating it full control of their assets during their lifetime, allowing them to alter, amend, or terminate it and take back the assets funded in the trust.
An estate planning option that manages and protects the assets of the individual during their lifetime, a Revocable Trust can be amended or revoked as the grantor desires. Included in estate taxes, the Revocable Trust lays out the guidelines of operation for the Trust, what and how beneficiaries are to receive trust property, as well as the powers the trustee does or doesn’t have. If properly funded, the Trust bypasses and avoids probate, remains private, and becomes irrevocable upon the grantor’s death.
*The person or people benefitting from the Revocable Trust are the beneficiaries. The money or property held by the trustee for the benefit of someone else is called the principal of the Revocable Trust. The value of the principal can change due to the trustee’s expenses or the investment’s appreciation or depreciation in the financial markets.