A revocable trust is a legal arrangement where a person, known as the grantor, transfers assets into a trust while retaining the right to modify or cancel the trust during their lifetime. This type of trust is commonly used for estate planning, as it allows the grantor to manage and control their assets while also designating how those assets should be handled after their death. The grantor sets up the trust and can place various assets into it, such as real estate, bank accounts, or investments. The grantor typically serves as the trustee, managing the trust's assets, and can also name a successor trustee to take over upon their death or if they become incapacitated. Since the trust is revocable, the grantor has the flexibility to change the terms, add or remove assets, and even dissolve the trust altogether if needed. One major benefit of a revocable trust is that it allows assets to bypass the probate process upon the grantor's death, which can speed up asset distribution and maintain privacy. While assets in a revocable trust are still considered part of the grantor's estate and subject to estate taxes, this type of trust provides a way to ensure assets are managed and transferred according to the grantor's wishes without the delays and public process of probate. Revocable trusts are often used by individuals who want greater control over their estate and a smooth transition of assets to their beneficiaries. They also provide some flexibility in managing the trust during the grantor's lifetime, making them a popular choice for estate planning.