What is a revocable trust?

A revocable trust is a type of trust that is created in Virginia and allows the grantor (creator of the trust) to change or revoke the trust at any time. A revocable trust can be used by the grantor to protect his/her assets from creditors and to manage the assets during his/her lifetime. In Virginia, the grantor also has control over how the assets in the trust are managed and distributed. The grantor can appoint a trustee (an individual or organization) to manage the trust and follow the grantor’s instructions for distributing assets. The grantor can also decide who will be the beneficiaries of the trust and how much they will receive upon the grantor’s death. When the grantor passes away, the revocable trust will become irrevocable. This means that it cannot be changed or revoked, and the assets in the trust will be distributed as the grantor specified in the trust agreement. Although revocable trusts are useful planning tools, they do have potential disadvantages. For example, the assets in the trust are usually subject to estate taxes, unlike other types of trusts. As a result, it is important to review the trust with an attorney to ensure that it meets your needs and goals.

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What is a revocable trust?

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