Trusts can be defined by whether or not the grantor has the authority to change or revoke the trust once it has been created.

A revocable living trust is a trust created when the grantor transfers the trust property to the trustee, but retains the authority to change the trust arrangement and regain control of the trust property. A revocable trust is treated as an incomplete gift made by the grantor because the grantor is able to take back the trust property at any time prior to death.

A transfer of property to a revocable trust does not change the grantor's tax consequences associated with the trust property. Therefore, the grantor is typically seeking non-tax advantages by implementing a revocable trust.

Some of the possible advantages of a revocable living trust are as follows:

• Avoids the publicity, expense, and delay of probate in most cases.
• Avoids the interruption of income for family members, if the grantor dies or becomes incompetent.
• Allows the grantor to view the trust in operation and make changes, if necessary.
• Relieves the grantor of burdens of investment management.
• Brings together assets scattered about in two or more jurisdictions.
• Gives the grantor the psychological benefit of gifting property for the trust of beneficiaries, while retaining the ability to reclaim the property.