Cannon Trust School Level I Practice Exam 2026 – The Comprehensive All-in-One Guide to Exam Success!

Revocable living trusts are private arrangements between the grantor and the trustee. The grantor retains control and can amend or revoke the trust at any time, which keeps the administration outside the public probate process and protects privacy. This setup focuses on managing assets and providing a smooth transfer after death, rather than involving court oversight. While they can help avoid probate, they do not by themselves remove assets from the taxable estate or create a separate income tax entity—the grantor typically reports trust income on their own tax return. So the hallmark feature is the private, trust-based arrangement directly between the grantor and trustee.