Revocable Trusts

A Flexible Estate Planning Tool for Control, Clarity, and Probate Avoidance

Revocable Trusts are one of the most common estate planning tools used by individuals and families of all ages. A revocable trust is also commonly referred to as a living trust. When properly established and funded, a revocable trust can play a central role in a comprehensive estate plan.

One of the primary reasons individuals establish a revocable trust is to avoid the probate process. However, probate avoidance is only one of many advantages. A revocable trust also allows the owner of assets to maintain control during their lifetime while clearly outlining how assets should be managed and distributed after death.

How a Revocable Trust Works

A revocable trust is created by an estate attorney and is typically funded during the grantor’s lifetime. The individual who creates the trust (the grantor) usually serves as their own trustee while they are alive, maintaining full control over the assets.

Key features include:

• The trust can be changed or revoked at any time

• The grantor maintains control of all assets

• Income taxes remain unchanged

• No special tax filings or accounting requirements

• Assets pass according to trust instructions rather than through probate

Because the trust is revocable, assets are not considered gifted away, unlike with irrevocable trusts.

Avoiding Probate

One of the most common objectives of a revocable trust is probate avoidance.

When assets are titled in the name of the revocable trust:

• They pass by trust, not by probate

• Distribution to beneficiaries is typically faster

• Estate details remain private

• Administrative costs and delays are often reduced

Probate avoidance can be especially valuable for estates with real estate, business interests, or assets located in multiple states.

Control Over Asset Distribution

Revocable trusts offer significant flexibility in how assets are distributed after death.

For example:

• Parents with young children can name a trustee to oversee assets

• Children may receive income or support for health, education, and living expenses

• Principal distributions can be delayed until specific ages (25, 30, 35, etc.)

• Assets can be distributed in stages rather than all at once

Without a trust, children may receive their full inheritance at the age of majority—often age 18—which may not align with a parent’s intentions.

Full Control During Your Lifetime

One of the biggest advantages of a revocable trust is that the grantor retains full control over the assets.

With a revocable trust:

• You can buy, sell, or change assets at any time

• You can amend or dissolve the trust

• You remain responsible for all tax reporting

• There is no asset protection from creditors or long-term care events

A revocable trust is about control and organization—not asset protection.

What Can a Revocable Trust Own?

Revocable trusts can own most types of assets, including:

• Checking and savings accounts

• Brokerage and investment accounts

• Real estate

• Business interests

• Non-qualified assets

However, revocable trusts cannot own retirement accounts, such as IRAs or 401(k)s. Retirement accounts must remain in an individual’s name.

That said, a revocable trust can be named as a beneficiary of a retirement account, depending on estate planning goals and tax considerations.

Is a Revocable Trust Right for You?

A revocable trust is not necessary for everyone. Whether it makes sense depends on:

• The size and complexity of the estate

• Whether probate avoidance is a priority

• Family dynamics

• Minor children or beneficiaries who may need oversight

• Privacy concerns

• Coordination with tax and retirement planning

We help clients evaluate whether a revocable trust is appropriate and, if so, what provisions should be included to support their objectives.