ANSWERS: 1
  • A revocable trust is a trust account that can be controlled by the owner (trustor), but upon the death of the owner it becomes irrevocable (unable to be changed) and passes to one or more beneficiaries.

    Trustor

    A trustor is the person who owns property or money to be put in a trust that will be inherited by a beneficiary upon the trustor's death.

    Trustee

    A trustee is the person or institution, such as a bank, named by the trustor to administer and control a trust.

    Trust

    A trust is money or property controlled by a trustee for the benefit of one or more beneficiaries until the death of the trustor.

    Revocable

    A revocable trust can be changed or terminated by the trustor. The trustor can take back control of the money or property from the trustee at any time.

    Estate

    When a trustor dies, a revocable trust becomes part of the estate, or assets, the trustor leaves behind. At that point it is irrevocable and cannot be changed.

    Beneficiary

    A beneficiary is one or more people or an institution that will receive the assets of the revocable trust upon the death of the trustor. The trustor names the beneficiaries when the trust is set up.

    Source:

    Internal Revenue Service

    Federal Deposit Insurance Corporation

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