Estate planning is a crucial step in securing your legacy and ensuring your assets are distributed according to your wishes. However, with so many legal tools available, it can be confusing to determine which is best for your needs. One common point of confusion is the difference between a living trust and a revocable trust. Many people ask, “Is a living trust the same as a revocable trust?” and the short answer is—yes, but with some clarification.
At Frame & Frame Attorneys at Law, we help Maryland families navigate estate planning with clear, effective solutions. This guide will explain living trusts vs revocable trusts, their differences, benefits, and how to determine the best estate planning strategy for your needs.
What Is a Living Trust?
A living trust is a legal arrangement created during a person’s lifetime to manage and protect assets. The individual who creates the trust, known as the grantor, transfers ownership of their assets to the trust, which is then managed by a trustee.
The key feature of a living trust is that it takes effect while the grantor is still alive, allowing for better control and management of assets. Living trusts are categorized into two types:
- Revocable Living Trust – Can be changed, modified, or revoked by the grantor at any time.
- Irrevocable Living Trust – Cannot be altered once it is established, offering asset protection benefits.
What Is a Revocable Trust?
A revocable trust is simply a revocable living trust—meaning it is a type of living trust that can be changed or revoked during the grantor’s lifetime. The grantor retains control over the assets and can modify the trust’s terms, including adding or removing beneficiaries.
When the grantor passes away, the revocable trust typically becomes irrevocable, meaning its terms can no longer be changed, and the assets are distributed according to the trust’s instructions.
Living Trust vs Revocable Trust: What’s the Difference?
The terms living trust and revocable trust are often used interchangeably. However, the key distinction is that a living trust can be either revocable or irrevocable, while a revocable trust is always a living trust that can be modified or revoked by the grantor.
To summarize:
| Feature | Living Trust | Revocable Trust |
| Type | Can be revocable or irrevocable | Always revocable |
| Control | Varies depending on type | Grantor retains full control |
| Modification | Irrevocable trusts cannot be changed | Can be changed anytime by the grantor |
| Probate Avoidance | Yes | Yes |
| Asset Protection | Only with irrevocable trusts | No, since the grantor still owns the assets |
Benefits of a Revocable Living Trust
A revocable living trust is one of the most common estate planning tools in Maryland. Here are some key benefits:
1. Avoiding Probate
Probate can be a time-consuming and expensive legal process where the court oversees the distribution of assets. A revocable living trust allows your assets to pass directly to your beneficiaries without probate, ensuring a smoother and faster transfer.
2. Maintaining Privacy
Unlike a will, which becomes public record after probate, a revocable trust remains private. This means your financial affairs and asset distribution remain confidential.
3. Flexibility and Control
With a revocable living trust, you retain full control over your assets while you’re alive. You can modify the trust, change beneficiaries, or even dissolve the trust if your circumstances change.
4. Planning for Incapacity
If you become incapacitated due to illness or injury, your successor trustee can step in and manage your trust assets according to your instructions, avoiding the need for court-appointed guardianship.
5. Smoother Asset Distribution
A revocable trust ensures that assets are distributed according to your wishes without delays or disputes, reducing the burden on your loved ones.
Potential Drawbacks of a Revocable Living Trust
While a revocable trust offers many advantages, there are some considerations:
- No Asset Protection – Since you still have control over the assets, they remain part of your estate and can be subject to creditors and lawsuits.
- Does Not Reduce Estate Taxes – A revocable trust does not provide tax benefits like an irrevocable trust might.
- Requires Proper Funding – Assets must be correctly transferred into the trust, or they may still go through probate.
When Should You Choose an Irrevocable Trust Instead?
An irrevocable trust may be a better option if:
- You want to protect assets from creditors or lawsuits.
- You are concerned about Medicaid planning and long-term care expenses.
- You want to reduce estate taxes by removing assets from your taxable estate.
Revocable Living Trust vs a Will: Which Is Better?
A will and a revocable living trust serve different purposes, and many estate plans include both.
| Feature | Revocable Living Trust | Will |
| Probate | Avoids probate | Must go through probate |
| Privacy | Private document | Becomes public record |
| Incapacity Protection | Successor trustee manages assets | Requires court-appointed guardian |
| Asset Distribution | Immediate, as per trust terms | Delayed due to probate process |
When a Will Is Still Necessary
Even with a revocable trust, a pour-over will is often used to ensure that any assets not transferred into the trust during your lifetime are added after your death. Additionally, a will is essential for:
- Naming guardians for minor children.
- Designating funeral and burial wishes.
- Covering assets outside of the trust.
Is a Living Trust Right for You?
Deciding between a living trust vs revocable trust depends on your estate planning goals. If you want to avoid probate, maintain control over your assets, and provide for your loved ones with minimal legal intervention, a revocable living trust is likely a great option.
However, if asset protection or tax benefits are a priority, an irrevocable trust may be more suitable.
How Frame & Frame Attorneys at Law Can Help
At Frame & Frame Attorneys at Law, we understand that estate planning can feel overwhelming. Our experienced Maryland estate planning attorneys will guide you through the process and help you determine whether a revocable living trust, an irrevocable trust, or a will best fits your needs.
We offer personalized estate planning solutions tailored to your financial situation, family structure, and long-term goals. Contact us today to schedule a consultation and take control of your future.