What is a revocable trust?

A revocable trust is an estate planning tool that can be used to manage assets and assets belonging to an individual, commonly called a grantor. It is used to transfer assets both during the grantor’s life and at the time of death. In North Carolina, a revocable trust is an agreement between the grantor and a trustee that states how the assets will be managed and distributed. The grantor, as the creator of the trust, has the right to change the terms or revoke the trust at any time while they are alive. The grantor puts assets in the trust and then the trustee is responsible for administering the trust and managing the assets as outlined in the trust document. The trustee may be appointed by the grantor, or may be a professional advisor. The trustee is responsible for overseeing the trust’s finances and distributing the trust property as directed in the trust document. Revocable trusts are beneficial because they allow the grantor to leave behind a plan for how their assets should be managed and distributed upon death. They also allow the grantor to avoid the cost and delay of going through probate court. Furthermore, revocable trusts keep the grantor’s assets private. It is important to note that revocable trusts are still subject to taxation, so it is important to consult a North Carolina trust and estates attorney to ensure the trust is set up properly.

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What is a revocable trust?

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