Which term is used for a trust that cannot be revoked?

Which term is used for a trust that cannot be revoked?

• A. Inter vivos or living trust
• B. Revocable trust
• C. Declaration of trust
• D. Irrevocable trust

Answer: (D)

The term used for a trust that cannot be revoked is irrevocable. The key idea is whether the creator retains the power to cancel or alter the trust. A living or inter vivos trust describes when the trust is created—during the grantor’s lifetime—and it can be either revocable or irrevocable, so that descriptor doesn’t by itself determine revocability. A declaration of trust is simply the document stating that property is held in trust, not a statement about whether the trust can be changed. A revocable trust, by contrast, is designed so the grantor can modify or revoke it. Therefore, the label that denotes a trust that cannot be revoked is irrevocable.

The term used for a trust that cannot be revoked is irrevocable. The key idea is whether the creator retains the power to cancel or alter the trust. A living or inter vivos trust describes when the trust is created—during the grantor’s lifetime—and it can be either revocable or irrevocable, so that descriptor doesn’t by itself determine revocability. A declaration of trust is simply the document stating that property is held in trust, not a statement about whether the trust can be changed. A revocable trust, by contrast, is designed so the grantor can modify or revoke it. Therefore, the label that denotes a trust that cannot be revoked is irrevocable.