A revocable trust—also known as a revocable living trust—is a trust that can be amended, modified, or terminated by the grantor, settlor, or trustor (person who created the trust) after it is created—and the grantor, settlor, or trustor may remove assets from the trust at any time. For example, a grantor, settlor, or trustor who terminates a revocable trust may recover the trust property or assets and any undistributed income.

Because a revocable trust may be revoked at any time it does not offer the tax benefits that an irrevocable trust offers. But a revocable trust may provide income from the assets to the grantor during the grantor’s lifetime and may allow the beneficiaries to avoid probate court, guardianship, or conservatorship proceedings, depending on the circumstances.

Laws vary from state to state but the grantor, settlor, or trustor usually must specify in the trust agreement that the trust is revocable or it will be considered irrevocable.

In New Mexico, a revocable trust, also known as a revocable living trust, is an estate planning tool that allows the person who creates the trust (grantor, settlor, or trustor) to maintain control over the trust assets during their lifetime. The grantor has the flexibility to amend, modify, or terminate the trust, and can remove assets from the trust at any time. While a revocable trust does not provide the same tax advantages as an irrevocable trust, it does offer other benefits such as potentially avoiding probate, and in some cases, avoiding guardianship or conservatorship proceedings for the beneficiaries. In New Mexico, as in other states, it is important for the trust agreement to explicitly state that the trust is revocable; otherwise, it will be presumed to be irrevocable. This means that the terms of the trust must clearly indicate the grantor's intention for the trust to be revocable to ensure that the grantor's rights to modify or revoke the trust are protected.