What type of trust is revocable and can be terminated by the trustor?

A revocable inter vivos trust is a type of trust that is established during the lifetime of the trustor (the person creating the trust) and can be altered or terminated by the trustor at any time. This flexibility is a defining characteristic of revocable trusts, allowing the trustor to maintain control over the assets placed in the trust and make changes as their circumstances or intentions change.

As the trustor can modify or dissolve the trust whenever desired, this type of trust is particularly useful for estate planning, allowing the trustor to manage assets during their lifetime while also providing for the eventual distribution of those assets upon their death according to their wishes. This contrasts with other types of trusts, such as irrevocable trusts, which cannot be altered or terminated once they are established and thus provide different benefits and implications regarding control and taxation.

Additionally, living trusts generally refer to the same category as revocable inter vivos trusts, but the specific answer chosen highlights both the revocability and the creation during the trustor's lifetime, making it the most accurate choice among the options listed. On the other hand, testamentary trusts are established through a will and take effect after the death of the trustor, thus lacking the revocability feature during the trustor