revisionary trust

(redirected from Revocable Living Trusts)

Revisionary trust

An irrevocable trust that becomes a revocable trust after a certain amount of time.

Revisionary Trust

An irrevocable trust that becomes a revocable trust after a certain number of years. An irrevocable trust is one where the grantor forfeits his/her ability to dissolve the trust and to reclaim the assets placed in it, while a revocable trust is one where the grantor retains these rights. If the grantor dies while the trust is irrevocable, the trust is not considered part of his/her estate for estate tax and inheritance tax purposes. On the other hand, if the grantor is still living when the trust become revocable, the assets can be considered part of the estate, but at the same time the grantor may revoke the trust and use the assets if he/she runs into financial difficulty or for any other reason.

revisionary trust

A trust that is irrevocable for a predetermined period (at least ten years or until the death of the beneficiary), after which it becomes revocable. During the time the trust is irrevocable it will not be included as part of the donor's estate for tax purposes.
References in periodicals archive ?
Tomorrow creates revocable living trusts and wills for individuals and prompts them to begin discussions with the people who would best serve as executors, trustees or guardians for their children.
The namesake revocable living trusts of Ronnie and Roberta Hudson acquired the land just east of Roland and along the Arkansas River from Bartley Moreland III, his wife, Debra, and their Moreland Family Ltd.
Revocable living trusts (RLT) are created to act as a will substitute, help minimize probate expenses, secure privacy, and aid in situations otherwise requiring a proxy.
Among them: irrevocable life insurance trusts, grantor trusts, special needs trusts, testamentary trusts and revocable living trusts.
Doran offers expertise in drafting wills, community property agreements, revocable living trusts and a variety of specialized trusts.
Incorporating revocable living trusts into a client's estate plan but forgetting to update all the account titling to the name of the trust.
Often, however, attorneys have drafted wills or revocable living trusts for couples with formula provisions that, due to the estate tax repeal, may cause the decedent's estate to be distributed entirely to a trust that will benefit the spouse and the decedent's children.
However, in some states, the statutory estate that can be elected against is expanded to include revocable living trusts.
Every year, many people have revocable living trusts drafted, but never properly funded.
Revocable living trusts can be changed or canceled, an irrevocable trust cannot.
The previous "Mistakes" article focused on Revocable Living Trusts (RLT), a financial planning vehicle that many people feel is an essential part of every estate plan.
Principal's most commonly created trusts are rabbi trusts--in which an employer is responsible for the current taxes generated by the trust--in the business setting, followed by irrevocable life insurance trusts and revocable living trusts.