What is a revocable living trust?

A revocable living trust is an estate planning document you create while alive that holds title to your assets and allows you to maintain full control over them. As the grantor (the person who creates the trust), you can amend, modify, or revoke the trust entirely at any point during your lifetime. You typically also serve as the trustee, managing the trust assets as you normally would.

The primary benefit of a revocable living trust is probate avoidance. When you fund the trust by retitling assets such as real estate, bank accounts, or investment accounts in the trust's name, those assets bypass the probate court process upon your death. Instead, your successor trustee can distribute them to your beneficiaries according to the trust's terms, usually more quickly and with less public disclosure than probate requires.

Assets not transferred into the trust during your lifetime remain subject to probate, so full funding is essential to maximize the trust's benefit. For tax purposes during your lifetime, a revocable trust is treated as part of your personal estate, so it provides no income or estate tax reduction while you live.

Unlike an irrevocable trust, which cannot be changed once established and is removed from your taxable estate, a revocable trust offers flexibility at the cost of continued tax inclusion. Many Charlotte residents use revocable trusts as a core element of their estate plan alongside a pour-over will and other documents. Consulting an estate planning attorney helps ensure the trust is properly drafted and funded for your specific goals.