What defines a revocable trust?

A revocable trust is defined by its flexibility and control granted to the grantor, allowing them to modify or revoke the trust at any time during their lifetime. This characteristic is fundamental to a revocable trust because it lets the grantor retain significant authority over the assets placed in the trust and dictate how they will be managed or distributed. This feature is especially useful for estate planning, as it allows the grantor to make adjustments in response to changing circumstances, such as changes in financial situations, family dynamics, or personal wishes regarding asset distribution.

In contrast, a trust that cannot be altered would be immutable and is characteristic of irrevocable trusts, which do not offer the same level of control to the grantor after they are established. Similarly, a trust created by a court refers to a court-ordered arrangement that typically arises in specific situations, such as after a legal dispute or guardianship case and doesn't reflect the flexibility of a revocable trust. Lastly, a trust specifically benefiting only minor children may describe certain trust arrangements but does not capture the broader definition or key functional aspect of a revocable trust, which can serve various beneficiaries and purposes. Thus, the correct answer highlights the essential feature of revocable trusts: the grantor's ability to modify or