Are family trusts revocable?

Yes, family trusts can be made revocable. That will, in turn, empower the grantor—the person creating the trust—with the power to amend or dissolve the trust whenever he or she wishes to do so. There is such flexibility, which is beneficial when there are changes in a grantor's personal life, financial situation, or even the dynamics of his or her family.

Revocable trusts are especially useful in estate planning. They avoid probate, which is expensive and time-consuming. Such trusts are also a means of distributing property on death according to the desires of the grantor.

That said, though, it's equally important to understand that the flexibility brought on by revocable trusts does not quite match the protection given by irrevocable trusts in securing assets. In an irrevocable trust, the grantor relinquishes all ownership interest in the assets, thereby removing such assets from creditors and legal actions.

If you are thinking about a family trust, you should speak with an estate planning attorney to discuss your individual needs and goals to determine whether a revocable or irrevocable trust will be more appropriate for you. At One Pacific Trust, our vision is to be the leading provider of trust services.