Delaware Wills and Trusts Practice Test

A revocable living trust is designed specifically to avoid probate, which is the legal process required to settle a deceased person's estate. When assets are placed into a revocable living trust, the individual (the grantor) retains control over those assets during their lifetime and can modify or revoke the trust at any point. Upon the grantor's death, the assets held in the trust can be transferred to the beneficiaries without going through the probate process, thus saving time and often reducing costs associated with settling an estate.

In contrast, a testamentary trust is established through a will and takes effect after the death of the individual. As a result, it must go through probate since the will itself is subject to the probate process.

An irrevocable trust, while it may have benefits in terms of tax planning and asset protection, cannot be altered or revoked by the grantor once established. The assets typically avoid probate, but this is not the primary characteristic that differentiates it from a revocable living trust.

A special needs trust is designed to provide for the needs of a disabled beneficiary without disqualifying them from government benefits. While it can also avoid probate, its primary focus is on meeting the specific needs of the beneficiary rather than on the general goal of estate planning