Revocable living trust

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A revocable living trust is a trust set up during the settlor’s life, where the settlor reserves the right to end the trust and recover the trust assets. If the settlor does not reserve the power to revoke the trust, then the general rule is that the trust is irrevocable. For example, Section 602(a) of the Uniform Trust Code states that “[u]nless the terms of a trust expressly provide that the trust is irrevocable, the settlor may revoke or amend the trust.” Additionally, Section 602 provides rules for, among other issues, revocation of trust with multiple settlors (Section 602(b)), revocation through an agent (Section 602(e)), and when a trustee does not know that a trust has been revoked (Section 602(g)). Jurisdictions may not uniformly adhere to the Uniform Trust Code, so such rules may vary depending on the jurisdiction. 

[Last updated in April of 2021 by the Wex Definitions Team]