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Key takeaways
- A revocable trust is fully editable while the grantor has capacity.
- Assets only pass through the trust if they have actually been retitled into it (“funded”).
- Revocable trusts avoid probate but do not provide asset protection or estate-tax savings on their own.
- An irrevocable trust is a separate vehicle that gives up control in exchange for asset protection or tax benefits.
How Olomon thinks about this
The most common reason a revocable trust fails is lack of funding — the trust exists, but the house, brokerage account, or LLC interest was never retitled into it. Olomon makes ownership visible at the asset level, so you (and your attorney) can see at a glance whether each significant asset has actually been moved into the trust.
In-depth definition
A revocable living trust is the workhorse of modern estate planning for households with real estate, multiple accounts, or anything they want kept out of public probate. It's created during life, owns assets in its own name, and can be amended or revoked at any time. At death, the successor trustee distributes the trust's assets according to the trust's terms — generally without court involvement.
Frequently asked questions
No. Because the grantor retains control, the assets remain reachable by the grantor's creditors during life and by estate creditors at death. Asset-protection planning typically requires irrevocable structures.
Yes — typically a “pour-over” will that catches assets not titled in the trust at death and routes them into it.
Sources
Primary, authoritative references.
- 1
Consumer Financial Protection Bureau
What is a revocable living trust? — CFPBCited for: Consumer-facing definition
- 2
National Institute on Aging (NIH)
Getting Your Affairs in OrderCited for: Trust placement in estate documents checklist
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Cite this page
APAOlomon Editorial Team. (2026). Living trust / revocable trust. Olomon Financial Glossary. https://olomon.com/financial-glossary/living-trust-revocable-trust