A trust that may be altered, amended, or revoked entirely by the settlor during their lifetime while they retain capacity. Also called a living trust or inter vivos trust. The settlor typically serves as trustee and retains complete control over trust assets until death or incapacity, at which point the trust becomes irrevocable.
A revocable trust is a trust you can change or cancel anytime while you're alive. You keep complete control—you can add or remove assets, change beneficiaries, or dissolve the trust entirely. It's flexible and lets you maintain control while potentially avoiding probate when you die.
⏱ When you'll encounter this term
- Estate planning to avoid probate
- Planning for potential incapacity
- Managing assets across state lines
- Seeking privacy in estate distribution
"Mum set up a revocable trust and transferred her house and investments into it. She's the trustee, so she still controls everything. If she changes her mind about beneficiaries or wants to sell assets, she can—it's completely flexible. When she dies, the trust assets will go to us kids without probate."
⚖️ Compare: Revocable Trust vs Irrevocable Trust
Can be changed or cancelled anytime. Grantor retains control. No asset protection or tax benefits. Flexible.
Cannot be changed without beneficiary consent. Grantor gives up control. Potential asset protection and tax benefits. Permanent.
💡 Did you know?
Because you retain complete control over a revocable trust, the IRS treats trust assets as yours for tax purposes and creditors can reach them. The main benefits are probate avoidance and incapacity planning, not tax savings or asset protection.