Question 28

What is a revocable living trust?

A revocable living trust is a fiduciary arrangement that allows a third party, or trustee, to hold assets on behalf of a beneficiary or beneficiaries. It is a type of trust that takes effect during the person’s life and can be changed or terminated at any time with the property and assets returning to the person handling the trust. A trust is traditionally used for minimizing estate taxes and can offer other benefits.