Revocable Trust

A revocable trust is a trust whose grantor retains the power to amend or revoke it during life, subject to the document's terms and applicable law. The grantor often serves as initial trustee and beneficiary, keeping practical control of the assets. A successor trustee can take over if the grantor dies or becomes unable to act under the trust's incapacity provisions.

In the United States, a properly funded revocable living trust is commonly used to keep covered assets out of court-supervised probate at death. Assets never transferred to the trust may still pass through probate or another ownership mechanism. Probate procedure and trust recognition vary by state and jurisdiction.

Why it matters for family offices

A revocable trust can support continuity, privacy, and coordinated administration, but it is not generally designed to remove assets from the grantor's taxable estate or shield them from the grantor's creditors while revocable. Tax and creditor effects depend on retained rights, local law, and the specific structure. The trust commonly becomes irrevocable at the grantor's death, after which different rules can apply.

Funding and records are critical. Bank accounts, company interests, and property intended for the trust need correct title, and beneficiary designations or joint ownership must be coordinated with the wider plan. The office also tracks successor trustees, originals, amendments, and institution acceptance.

How it shows up in practice

Suppose a US principal signs a revocable trust naming a successor trustee, but one investment account and a holiday property remain in the principal's individual name. The family office compares the asset register with the estate plan and asks local counsel which assets should be retitled and which should pass another way.

After approved transfers are completed, the office updates account ownership and preserves evidence. Years later, the successor trustee can identify the trust assets and access current records when the principal loses capacity. The document supports continuity because it was funded and maintained, not merely because it was signed.