A revocable trust—also known as a revocable living trust—is a trust that can be amended, modified, or terminated by the grantor, settlor, or trustor (person who created the trust) after it is created—and the grantor, settlor, or trustor may remove assets from the trust at any time. For example, a grantor, settlor, or trustor who terminates a revocable trust may recover the trust property or assets and any undistributed income.

Because a revocable trust may be revoked at any time it does not offer the tax benefits that an irrevocable trust offers. But a revocable trust may provide income from the assets to the grantor during the grantor’s lifetime and may allow the beneficiaries to avoid probate court, guardianship, or conservatorship proceedings, depending on the circumstances.

Laws vary from state to state but the grantor, settlor, or trustor usually must specify in the trust agreement that the trust is revocable or it will be considered irrevocable.

In Iowa, a revocable trust, also known as a revocable living trust, is an estate planning tool that allows the person who creates the trust (grantor, settlor, or trustor) to maintain control over the trust assets during their lifetime. The grantor has the flexibility to amend, modify, or terminate the trust, and can remove assets from the trust at any time. While revocable trusts do not provide the same tax advantages as irrevocable trusts, they do offer other benefits. These benefits include the potential to provide income to the grantor during their lifetime and to allow the trust's assets to bypass the probate process upon the grantor's death, which can save time and money for the beneficiaries. Additionally, revocable trusts can help avoid guardianship or conservatorship proceedings if the grantor becomes incapacitated. In Iowa, as in many states, the trust agreement must explicitly state that the trust is revocable; otherwise, it is presumed to be irrevocable. It's important to draft a revocable trust with clear terms to ensure that it functions as intended and complies with Iowa state law.