What does revocable trust mean?

The revocable trust is the entity the grantor creates to hold, manage, and distribute his assets during his lifetime and at the date of his death. The most essential attribute of a revocable trust lies in the capability given to the grantor in being able to change, amend, or dissolve it at will during the whole lifetime, hence referred to as "revocable." In so doing, the grantor can easily adapt his estate planning to any changes that might occur during one's lifetime, such as the acquisition of new assets, life changes, and beneficiary designations.

The assets held in trust during the grantor's life are managed on behalf of the grantor. Normally, the grantor would be the trustee and retain all control over the principal and how the principal should be distributed. A grantor may also appoint a successor trustee who would take over the management of the trust in case he dies or becomes incapacitated. Upon the death of the grantor, the trust normally becomes irrevocable, and no further changes are allowed to its terms. The successor trustee is charged with distributing the assets per the directions set out in the trust document.

One of the most significant benefits of a revocable trust is that it may enable property to avoid probate, sometimes a time-consuming and costly court process that typically occurs upon an owner's death if no trust was set up. Assets within a revocable living trust will not be subject to probate, thus providing swifter and more private distribution to the beneficiaries.

To that end, we at One Pacific Trust offer professional advice in drafting and managing your revocable trust while ensuring your estate is treated with the highest degree of care and precision possible. Our services are designed to keep you in control of your assets during your lifetime while providing a seamless process for your beneficiaries upon your death. By helping to ensure your estate plan is flexible and effective, and by aligning it with your long-term goals, we provide the expertise you need.