# Revocable living trust

> A revocable living trust is a legal arrangement you create and control during your life that holds your assets and passes them to your heirs at death without going through probate.

Canonical page: https://find.wellspent.co/glossary/revocable-living-trust/
Also called: living trust, revocable trust

You usually serve as your own trustee and can change or cancel the trust at any time. You name a successor trustee to take over if you can no longer manage your affairs or when you die, and that person distributes assets under the trust's terms, privately and often faster than a court process.

The trust controls only what you actually put into it: retitled bank and brokerage accounts, real estate deeds, and so on. A trust that was never funded does little. Retirement accounts normally stay in your name and pass by beneficiary designation.

A revocable trust doesn't by itself reduce estate tax, and for 2026 the federal estate tax exemption is $15 million per person. For most families the reasons are avoiding probate, privacy, and a plan for incapacity.

## How to check

Check that each account's title or beneficiary form matches the plan. An advisor can review how the trust is funded; drafting it is a job for an estate attorney.

## Sources

- [CFPB: Managing someone else's money (guides for trustees and agents)](https://www.consumerfinance.gov/consumer-tools/managing-someone-elses-money/)
- [IRS: What's new, estate and gift tax](https://www.irs.gov/businesses/small-businesses-self-employed/whats-new-estate-and-gift-tax)

## Related terms

- [Probate](https://find.wellspent.co/glossary/probate.md)
- [Beneficiary designation](https://find.wellspent.co/glossary/beneficiary-designation.md)
- [Financial power of attorney](https://find.wellspent.co/glossary/power-of-attorney.md)
- [Step-up in basis](https://find.wellspent.co/glossary/step-up-in-basis.md)