What is a revocable trust?

A revocable trust is a legal arrangement in which a person (the grantor or settlor) gives property to another person (the trustee) to hold for the benefit of a third party (the beneficiary). The grantor remains in control of the trust and can change or revoke it at any time. This type of trust is commonly used in Pennsylvania to plan for the transfer of assets from one generation to the next. In a revocable trust, the grantor has the power to modify the trust’s terms, change the beneficiaries, or even revoke it entirely. The primary advantage of this type of trust is that it allows the grantor to manage their assets and plan for the eventual transfer of wealth without losing control of the property. Because the trust is revocable, the grantor may choose to remove assets from the trust during their lifetime if necessary. They can also use the trust to minimize possible inheritance taxes and ensure that assets will be distributed according to their wishes after their death. The grantor names a trustee to manage the trust and ensure that the beneficiary’s interests are protected. The trustee is responsible for administering the trust and making sure that all applicable laws are followed. A revocable trust is a valuable tool for estate planning in Pennsylvania. By utilizing a revocable trust, the grantor can maintain control over their property while also ensuring that it is distributed according to their wishes after they pass away.

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