Revocable Trust
A trust that can be changed, amended, or completely canceled by the person who created it during their lifetime. Also called a revocable living trust. It becomes irrevocable when the creator dies.
Legal Definition
A trust in which the grantor retains the power to revoke, amend, or modify the trust instrument and reclaim trust assets during the grantor's lifetime. Upon the grantor's death, it typically becomes irrevocable.
Practical Example
Maria creates a revocable trust and puts her home and investments in it. Years later, she decides to add a new beneficiary and change how her investments are distributed. Because it's revocable, she can make these changes freely.