Which statement best describes a revocable trust?

A revocable trust is a legal arrangement that allows the grantor—the person who creates the trust—to retain control over the assets placed in the trust. This flexibility is a key feature of a revocable trust. The grantor has the ability to change the terms of the trust, add or remove assets, or even completely dissolve the trust if they choose. This ability to modify or terminate the trust at any time is what distinguishes it from irrevocable trusts, which, once established, cannot be altered without the consent of all the beneficiaries or the court.

In the context of the other choices, the first option inaccurately describes a revocable trust's fundamental characteristic, which is the ability to modify it. The third choice suggests that court approval is required for modifications, which is not true for revocable trusts, as it is entirely within the grantor’s control. Lastly, the fourth option limits the purpose of a revocable trust to the distribution of marital assets only, which is misleading; revocable trusts can hold a variety of assets and serve broader purposes beyond just marital distributions. Therefore, the statement that accurately reflects the nature of a revocable trust is that it can be changed or terminated by the grantor at any time.