Revocable Trust

Revocable Trust

A revocable Trust, also known as a Trust/">Living Trust, is an estate planning tool that allows the grantor (the person who creates the Trust) to maintain control over the Assets placed within the Trust during their lifetime. The grantor can modify or revoke the Trust at any time, hence the name “revocable.” Upon the grantor’s death, the Trust becomes irrevocable, and the Assets are distributed according to the Trust’s terms without going through Probate.

Examples

• Example 1: Jane creates a revocable Trust to hold her home and savings. She retains the right to change the beneficiaries or dissolve the Trust at any time while she is alive.
• Example 2: Tom establishes a revocable Trust for his investment accounts, allowing him to manage his investments during his lifetime and ensuring a smooth transfer to his children after his death.

Cases

• Case 1: In the case of Johnson v. Johnson, the court upheld the validity of a revocable Trust that was amended several times, illustrating the grantor’s ongoing control over the Trust’s terms.
• Case 2: In Smith v. Smith, the court ruled in favor of the Trust’s beneficiaries, affirming that the Assets held in a revocable Trust bypass Probate, which facilitated a quicker distribution process.