Recommendations & StrategiesQuestion 73 of 110
A revocable living trust offers which primary benefit during the grantor's lifetime and at death?
a.Assets can avoid probate while the grantor retains control during life
b.It permanently shields assets from all income taxes
c.It cannot be changed once created
d.It guarantees a fixed investment return
Explanation
A revocable living trust lets the grantor retain control and amend the trust during life, and assets held in it generally pass to beneficiaries outside of probate at death. Because it is revocable, its assets remain part of the grantor's taxable estate and are not shielded from income tax. Its main advantages are probate avoidance and continuity.
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