What is a revocable trust?

A revocable trust is a type of trust in which the grantor (the person setting up the trust) has the option to modify or revoke the trust if their wishes change. This type of trust is commonly used in Texas for estate and tax planning purposes. The grantor of a revocable trust has the ability to make changes to it over time and even dissolve it if they decide they no longer need it. This allows flexibility in case their financial or life circumstances change over time. Additionally, after the grantor has created the trust, they can still retain control of their assets by serving as the trustee and controlling how the assets are used and distributed. A revocable trust is also beneficial in Texas because it helps with asset protection and tax planning. With this kind of trust, the assets in the trust are protected from creditors and the grantor can move certain assets out of their estate to reduce estate taxes. Overall, a revocable trust is a type of trust that gives the grantor the flexibility to make changes and even revoke it. In Texas, this type of trust is commonly used for asset protection and tax planning purposes.

Related FAQs

What is a pour-over will?
What is a charitable remainder trust?
What are the duties of a trustee?
What is a testamentary trust?
What is a trustee?
What is a discretionary trust?
What is a trust protector?
What is a will?
How do I name a beneficiary in a trust?
What is a durable power of attorney for healthcare?

What is a revocable trust?

Related FAQs

Related Blog Posts