NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Tools for Estate Planning
Which of the following is a feature of a revocable living trust compared with an irrevocable trust?
A revocable trust allows the settlor to modify or cancel the trust during their lifetime, keeping control over the assets. An irrevocable trust, in contrast, generally cannot be changed or cancelled by the settlor once created.
- AThe settlor can generally modify or revoke it during their lifetimeCorrect
- BThe settlor can never change any term once it is created
- CIt is available only after the settlor's death
- DThe trustee must be a government body
Explanation
A revocable trust lets the settlor retain the power to amend or revoke it while alive, so the settlor keeps control. An irrevocable trust generally cannot be altered without beneficiary consent or legal process, and both can be created in life.
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