Revocable Trust
Barron's Finance & Investment Dictionary:
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Revocable Trust
agreement whereby income-producing property is deeded to heirs. The provisions of such a trust may be altered as many times as the grantor pleases, or the entire trust agreement can be canceled, unlike Irrevocable Trusts. The grantor receives income from the assets, but the property passes directly to the beneficiaries at the grantor’s death, without having to go through probate court proceedings. Since the assets are still part of the grantor’s estate, however
, estate taxes must be paid on this transfer. This kind of trust differs from an irrevocable trust, which permanently transfers assets from the estate during the grantor’s lifetime and therefore escapes estate taxes.
, estate taxes must be paid on this transfer. This kind of trust differs from an irrevocable trust, which permanently transfers assets from the estate during the grantor’s lifetime and therefore escapes estate taxes.
| Revisionary Trust, Reversing Trade | |
| Revolving Credit, Revolving Line of Credit |
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Revocable Trust
Investopedia Financial Dictionary:
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Revocable Trust
A trust whereby provisions can be altered or canceled dependent on the grantor. During the life of the trust, income earned is distributed to the grantor, and only after death does property transfer to the beneficiaries.
Also referred to as a "revocable living trust".
Investopedia Says:
This type of agreement provides flexibility and income to the living grantor; he or she is able to adjust the provisions of the trust and earn income, all the while knowing that the estate will be transferred upon death.
Related Links:
This arrangement allows you to have more control over your estate - both before and after your death. Establishing A Revocable Living Trust
With some preparation, you can save your heirs from paying a hefty estate tax. Here are some tips. Getting Started On Your Estate Plan
What would happen if you were suddenly unable to manage your financial affairs? Preparation is the best protection. Your Will: Why You Need A Power Of Attorney And Beneficiaries
Estate planning is not just about the division of assets after you die. Read on to save your loved ones extra grief. Three Documents You Shouldn't Do Without
Don't let bad estate planning lead to unnecessary costs and stress for your inheritors. Skipping-Out on Probate Costs
Leaving liquid assets like cash or securities to minors can be a complicated procedure. Make sure you understand how your gift will be distributed, managed and taxed. Designating A Minor As An IRA Beneficiary
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Barron's Finance & Investment Dictionary
Dictionary of Finance and Investment Terms. Copyright © 2010 by Barron's Educational Series, Inc. All rights reserved.
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Mentioned in
Irrevocable Trust
(in banking)
Revisionary Trust
(finance term)
Irrevocable Living Trust
(insurance term)
Trust
(in banking)
Estate and Gift Taxes
(legal term)
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