What is a revocable trust?

A revocable trust is a legal arrangement that allows a person (the grantor) to place assets into a trust during their lifetime while maintaining control over those assets. The grantor can change, amend, or revoke the trust at any time while they are still alive and mentally competent.

Last updated:

June 11, 2025

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Charles A. Borek

General Counsel, JD, CPA, MBA

What is a revocable trust?

A revocable trust is a legal arrangement that allows a person (the grantor) to place assets into a trust during their lifetime while maintaining control over those assets. The key feature is that the grantor can change, amend, or revoke the trust at any time while they are still alive and mentally competent.

Revocable trusts are also known as revocable living trusts, or RLTs. The term “revocable” means you can change or amend the trust at any point during your lifetime. These changes can include adding or removing beneficiaries, transferring assets in or out, and changing distribution amounts to your beneficiaries. You can also terminate an RLT if it no longer suits your needs or meets your estate planning goals.

Since you establish an RLT during your lifetime, you can choose to serve as trustee while you’re still living. This gives you greater control over the assets in the trust, especially if you plan to continue to use them. This also means you’ll have to appoint a successor trustee to manage the trust after you die or if you become incapacitated.

An RLT offers many benefits to both its creator and its beneficiaries.

Benefits of a revocable trust

There are several benefits to having a revocable trust, including:

Flexibility: As the creator of a revocable trust, you can change your RLT at any time. Changes can include naming a different trustee, transferring a new asset, or canceling the trust.
Maintaining control of your assets: If you choose to act as trustee during your lifetime, you can keep managing and using your assets after they've been put into your trust.
Avoiding probate: Probate is the legal process of distributing your assets according to your last will and testament. This process can be long and expensive. Assets in a trust aren’t subject to probate. Instead, they transfer directly to your beneficiaries, saving your loved ones time, hassle, and money.
Avoiding ancillary probate: If you own property in more than one state, a trust lets you avoid ancillary (or secondary) probate in states you don’t live in.
Privacy: The probate process makes information about your will public — including details you may want to keep confidential, like the value of your assets or who your beneficiaries are. Because trust assets don’t have to go through probate, your information stays private and out of the public eye.
Protection in the event of incapacitation: Incapacitation means that you’re still living but are no longer capable of managing your trust — for example, if you were in a coma or developed a neurodegenerative disease, like dementia. In this case, your successor trustee would take over trustee duties on your behalf. This includes following any instructions in your trust documents regarding using trust funds for your care.

Drawbacks of a revocable trust

Revocable trusts aren’t right for every situation. They do have certain limitations, like:

Limited tax benefits: Assets in a revocable trust aren’t exempt from estate tax. Depending on the total value of your estate, your assets may be subject to estate tax — particularly if your assets are worth more than the U.S. federal tax exemption threshold. In 2025, this amount is $13.99 million for individuals and $27.98 million for married couples (Source: IRS). Several states also impose their own estate taxes — many of which have lower thresholds.
No protection from creditors: Assets held in an RLT aren’t protected from debt collectors. If you’re concerned about keeping your personal assets out of reach of future creditors, you may want to consider establishing an irrevocable trust.
Additional management: A revocable trust often requires more maintenance than a will. Any time you get a new asset — like when you buy a house — you’ll want to consider if it makes sense to transfer that property into your trust. If so, you’ll have to complete the necessary paperwork to facilitate the transfer. Changes must be carefully recorded, and you’ll have to fill out and file various forms every time you make a change to your trust. For example, say you want to add a gift under your trust to your alma mater. To do this, you’ll need to complete a trust amendment form.

Frequently asked questions about revocable trusts

Can a revocable trust be changed?

Yes! The ability to make changes is one of the greatest advantages of a revocable trust. As the grantor, you have the power to amend, rewrite (known as “restating”), or even cancel your revocable trust at any time.

How much does a revocable trust cost?

The cost of having a revocable trust can vary based on several factors, such as:

The state you live in
What assets are in your trust
The terms or provisions you’ve included in your trust

Costs and fees can also depend on whether you create your trust yourself or enlist the help of an estate planning attorney. If you hire a professional to help, you’ll have to pay for their services.

There are also many online resources you can use to create your trust documents. You can use FreeWill’s easy-to-use revocable living trust tool to create your trust at the fraction of the cost of an attorney.

What happens to a revocable trust after the grantor dies?

When the grantor — or the person who created the trust — passes away, their revocable trust automatically becomes an irrevocable trust.

The trustee (or successor trustee, if the grantor acted as trustee during their lifetime) is then responsible for managing the trust. They’ll need to pay any taxes or debts owed, distribute assets to beneficiaries, and close the trust according to the trust terms.

Do I still need a will if I have a trust?

If you have a trust, it’s still important to have a will. A will lets you do things you can’t with a trust alone, like name a guardian for your minor children.

Many people create a pour-over will alongside their trust. If you own assets and don’t transfer them into your trust before you pass away, a pour-over will transfers them after your death. Just like any will, however, a pour-over will has to go through the probate process before property can be transferred to the trust. That’s why it’s often smart to promptly transfer any new assets you acquire to your trust.

If you create your RLT with FreeWill, we include a pour-over will with your trust document, including legal language covering guardianship of your minor children.

Is a revocable trust right for me?

Only you can decide whether or not a revocable trust is right for you and your estate planning goals. When in doubt, an estate planning attorney can help you decide what type of trust will best suit your needs. They can offer insight, advice, and guidance throughout the process.