What is a revocable trust?

A revocable trust is a type of trust that can be amended, modified, or revoked at any time by the trust creator. This type of trust is typically used when someone wants to avoid probate, unburden their heirs from the tedious and expensive probate process, as well as when they wish to keep certain assets and investments out of public record. In the state of Nevada, a revocable trust is created by a grantor—the person who sets up the trust—and a trustee—the person or entity that will manage the trust. The grantor will transfer title of the property to be included in the trust into the name of the trust. The trustee is then responsible for managing the property and its assets according to the trust terms. The grantor sets forth how the assets of the trust will be managed upon their death or incapacity, such as if the assets should be used for a loved one’s health care or education expenses. All of the revocable trust terms are created and changed at the grantor’s discretion during their lifetime. The grantor reserves the right to revoke the trust at any time. If the trust is revoked, the grantor will regain ownership of all the assets in the trust. However, this type of trust does not provide the same asset protection that an irrevocable trust does and is not always the most effective estate planning tool for asset protection.

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