A revocable trust, established during an individual’s lifetime, allows for the management and distribution of assets while the individual is alive and retains the power to modify or terminate the trust. The pivotal moment for such a trust occurs upon the death of the person who created it, commonly known as the grantor or settlor. At that juncture, the trust’s nature undergoes a significant transformation.
The demise of the grantor triggers the irrevocable nature of the trust. The flexibility to amend or revoke the document ceases, and the trust becomes a separate legal entity operating according to its established terms. This transition is crucial for estate planning, as it facilitates the efficient transfer of assets, potentially bypassing probate court proceedings and providing a degree of privacy not afforded by a will. The trust’s structure allows for continued asset management and distribution to beneficiaries according to the grantor’s pre-determined wishes.
