In a revocable trust, the terms of the arrangement can be altered at any time by the grantor during their life. The assets in a trust are considered personal assets, so they’re typically subject to taxes and can be targeted by creditors in the event of a lawsuit. But most people choose a revocable trust because it provides a great deal of flexibility, allowing the grantor to change or cancel the trust as they see fit.
It’s especially well-suited to individuals who want to plan for the possibility of future mental incapacity. A revocable trust allows the grantor to appoint a trustee who will manage the assets in the trust if the grantor becomes incapable of handling their own financial affairs. The grantor can designate exactly what they want to happen to the assets in this event and what steps the trustee should follow.