What is a Revocable Trust?

A revocable trust, also known as a revocable living trust, is a legal arrangement where the settlor (the person who creates the trust) transfers property into the trust and retains the right to amend, revoke, or terminate the trust during their lifetime. In Nebraska, unless the terms of the trust expressly state that it is irrevocable, the settlor may revoke or amend the trust.

While the trust is revocable, the rights of the beneficiaries are subject to the control of the settlor, and the duties of the trustee are owed exclusively to the settlor. This means that the settlor has full control over the trust assets and can make changes as they see fit. Upon the death of the settlor, the trust typically becomes irrevocable, and the trustee is then responsible for managing and distributing the trust assets according to the terms set forth in the trust document.

Revocable trusts are often used for estate planning purposes, allowing the settlor to manage their assets during their lifetime and providing a mechanism for the distribution of those assets upon their death without the need for probate.

The trust can include various types of property, such as real estate, bank accounts, and personal property, and can provide detailed instructions for the distribution of these assets.