Trusts can also be revocable and irrevocable. A revocable trust is a trust which the grantor (the person who creates the trust) can amend, cancel or revoke at any time. An irrevocable trust cannot be cancelled, revoked or even amended after it is made. Since testamentary trusts are not created until the grantor has died, they are irrevocable upon the grantor’s death. Prior to the grantor’s death, they have not gone into effect, so the grantor could change his Will or Revocable Living Trust to change the provisions of a testamentary trust or to eliminate it completely. For example, the grantor could change his Will to provide “I leave $50,000 to John to hold for the benefit of my niece, Nancy, to be held until she is 25 years old.” Under the change, John cannot use the money to pay for Nancy’s education, and he must turn over all the trust assets to Nancy when she reaches 25 years of age.
What is the difference between Revocable and Irrevocable Trusts?
Excellent post. I was checking continuously this blog and I am impressed! Very useful information specifically the last part 🙂 I care for such info a lot. I was looking for this certain information for a very long time. Thank you and good luck.