Under common law, trusts are presumed to be _________ unless the grantor revokes or the document allows revocation.

Under common law, trusts are presumed to be _________ unless the grantor revokes or the document allows revocation.

• A. Revocable
• B. Irrevocable
• C. Void
• D. Testamentary

Answer: (B)

Revocability of trusts is the idea at play here. Under common law, a trust is treated as irrevocable by default, unless the grantor has reserved a power to revoke or the instrument itself permits revocation. In other words, the trust terms and the absence of a valid revocation provision set the stage for permanence—the assets are to be held and administered according to the trust for the beneficiaries, rather than being easily pulled back by the grantor. The only ways to revoke or modify such a trust are through a mechanism the document provides or through the grantor’s retained power, if any. This is why the statement points to irrevocable as the default classification: revocation becomes possible only when the instrument explicitly allows it or the grantor has a specific revocation power. If a trust is revocable by default, that would undermine the long-term planning and protection aims trusts are often used for.

Revocability of trusts is the idea at play here. Under common law, a trust is treated as irrevocable by default, unless the grantor has reserved a power to revoke or the instrument itself permits revocation. In other words, the trust terms and the absence of a valid revocation provision set the stage for permanence—the assets are to be held and administered according to the trust for the beneficiaries, rather than being easily pulled back by the grantor. The only ways to revoke or modify such a trust are through a mechanism the document provides or through the grantor’s retained power, if any. This is why the statement points to irrevocable as the default classification: revocation becomes possible only when the instrument explicitly allows it or the grantor has a specific revocation power. If a trust is revocable by default, that would undermine the long-term planning and protection aims trusts are often used for.