Revocable (Living) Trust

A revocable trust — often called a living trust — is a formal legal structure where the person who creates it (called the grantor) transfers assets into the trust while keeping full control. Because that control never disappears during the grantor's life, the grantor can amend the terms, swap assets in and out, or dissolve the trust entirely. Families commonly use revocable trusts as a foundational piece of the legal entity stack built around significant wealth.

The most practical benefit is probate avoidance. Probate is the court-supervised process of distributing a deceased person's assets — it is public, slow, and can be costly. Assets held in a revocable trust typically pass directly to named beneficiaries without going through that process, which matters especially to families with property in multiple states, since each state would otherwise require its own probate proceeding.

A common misconception is that a revocable trust provides asset protection — shielding wealth from creditors or lawsuits. It does not. Because the grantor retains control, courts and creditors generally treat the trust's assets as still belonging to the grantor personally. Families seeking creditor protection typically look instead to an irrevocable trust, which works very differently. Anyone structuring a revocable trust must work with a qualified attorney, as rules vary by jurisdiction.