Revocable Living Trust

Updated August 8, 2026

The main reason people set up a revocable living trust is to keep their family out of probate court. Trusts can also be more complex to draft correctly than a simple will, so before making decisions about your estate, it helps to understand what a revocable living trust is designed to do, what it doesn’t do, and where it fits alongside other estate planning tools.

What Is a Revocable Living Trust?

A revocable living trust is a legal document that lets you manage your own assets during your lifetime while spelling out exactly how they should be distributed after your death. It’s “revocable” because you can amend or revoke it at any time, as long as you’re mentally competent, which gives you ongoing control as your circumstances change.

Nevada trusts are governed by NRS Chapter 163, which sets the rules for how trusts must be created, funded, and administered in the state. Nevada’s trust laws are relatively flexible compared to many states, which is part of why revocable living trusts are so widely used here. Unlike a will, assets held in a properly funded trust generally bypass probate entirely, which can save your family significant time and expense.

Because a trust is a binding legal document, working with an experienced estate planning attorney matters. A well-drafted trust and a poorly drafted one can differ enormously in practice, affecting everything from how smoothly assets transfer to your heirs to how the trust is treated for tax purposes.

How a Revocable Trust Works

Three roles make up a trust: the grantor (you, the person creating the trust and typically also the person whose assets fund it), the trustee (who manages the trust’s assets according to its terms), and the beneficiaries (who receive the assets, eventually). In a revocable trust, the grantor usually serves as trustee too, managing their own assets exactly as they did before, just now under the trust’s name.

The assets held by the trust are called the principal, or corpus. Any income the principal generates while you’re alive, such as interest or dividends, is still taxed to you personally. Under IRS rules, a revocable trust is treated as a “grantor trust,” meaning the trust itself doesn’t file a separate return during your lifetime; its income and deductions pass through to your individual tax return.

Once you pass away, the trust becomes irrevocable, and your named successor trustee takes over, distributing assets according to the instructions you left behind, without court involvement.

What Assets Can Go Into a Revocable Living Trust?

Most types of property can be transferred into a revocable living trust, including:

1. Real estate: Your primary residence, vacation property, rental units, and undeveloped land. Retitling real property into a trust is one of the more common ways to avoid probate on a home.
2. Financial accounts: Bank accounts, savings accounts, CDs, and brokerage accounts can be retitled in the trust’s name.
3. Life insurance policies: You can name the trust as beneficiary, or transfer ownership of the policy to the trust outright.
4. Personal property: Artwork, jewelry, collectibles, furniture, and vehicles can all be held in trust, which can help avoid disputes among heirs later.
5. Retirement accounts: IRAs and 401(k)s aren’t usually transferred directly into a trust, but the trust can be named as beneficiary to control how those assets are distributed after your death.
6. Mortgage notes and personal loans: If you hold notes or have lent money to others, these can be documented in the trust for clarity, though funding debt obligations into a trust requires careful drafting.

An estate planning attorney can help make sure each asset is properly retitled, since a trust only controls what’s actually been transferred into it.

How to Establish a Revocable Living Trust

Setting one up requires being an adult with the mental capacity to manage your own affairs, and generally involves three steps:

• Drafting a written trust agreement that names a trustee to manage your property.
• Naming that trustee, whether that’s yourself, a trusted individual, or a corporate trustee like a bank or trust company. Many people serve as their own trustee for as long as they’re able.
• Formally transferring, or “funding,” your assets into the trust.

Once assets are transferred, the trust technically owns them, though as trustee you continue to manage and use them exactly as before. You can amend the trust’s terms at any time; only after your death does the distribution to beneficiaries actually take place.

How The Giuliani Law Firm Can Help

Our revocable living trust attorney in Las Vegas handles the full process: drafting the trust, preparing a pour-over will to catch any assets left outside it, and putting the necessary powers of attorney in place for healthcare decisions. We typically walk clients through two main phases:

Designing the Trust

We help structure the trust to reflect your actual wishes, not a generic template. For example, you might direct that a beneficiary’s share be held for their support and education until they reach a certain age, with full distribution only once they’re older.

Funding the Trust

Drafting the trust is only half the work; the assets still need to be formally retitled into it. Skipping or rushing this step is one of the most common reasons trusts fail to avoid probate the way people expect.

Managing Assets in a Revocable Living Trust

Because you retain full control over a revocable trust while you’re alive, day-to-day management doesn’t change much: you can buy, sell, or move assets in and out of the trust as needed. The real value shows up in two situations. First, if you become incapacitated, your designated successor trustee can step in and manage the trust’s assets without the need for a court-appointed guardian. Second, after your death, the trustee follows your written instructions directly, which keeps administration straightforward and private compared to probate.

Revocable Trust vs. Irrevocable Trust

A revocable trust can be changed or revoked at any time by the grantor, which is its main advantage over an irrevocable trust. You can update beneficiaries, adjust terms, or dissolve the trust entirely as your circumstances change.

An irrevocable trust, once created, generally can’t be modified without the consent of everyone named in it, including beneficiaries. The tax treatment also differs: assets in a revocable trust are still legally yours, so you continue paying taxes on any income they generate. In an irrevocable trust, the assets are no longer yours; the trust itself becomes responsible for its own tax obligations.

Living Trust vs. Will

A living trust and a will cover different windows of time. A revocable living trust can protect your assets while you’re alive, if you become incapacitated, and after you pass away. A will only takes effect after death.

Wills also go through Nevada’s probate process, which becomes part of the public record and can be contested in court. A properly funded trust stays private and generally avoids probate altogether. That said, a will is often cheaper and simpler to draft, and remains necessary even alongside a trust, since a pour-over will catches any assets you didn’t get around to transferring.

Pros and Cons of a Revocable Living Trust

Advantages:

• Avoids probate. This is the primary reason most people set one up; it saves your family time, money, and a public court process.
• Flexible. You can amend the trust at any time while you’re competent.
• Private. Unlike a will, a trust’s contents don’t become part of the public record.
• Reduces the odds of a successful will contest, since trust terms are generally harder to challenge than a will.
• Keeps separate property separate, which can matter for spouses who each brought significant assets into the marriage.
• Provides for guardianship and incapacity planning, letting your successor trustee step in immediately if you’re unable to manage your own affairs, without a court-appointed guardian.
• Supports long-term wealth management, since a qualified trustee can continue overseeing trust assets across generations if you choose.
• Can incorporate tax-reduction strategies, such as a credit shelter trust, for larger estates that exceed the federal estate tax exclusion.

Disadvantages:

• Upfront cost. Setting up a trust with an attorney costs more than drafting a simple will.
• Ongoing maintenance. Trusts don’t update themselves. Life changes like divorce or a new child require you to revisit and revise the trust yourself.
• Retitling work. Property has to be formally transferred into the trust’s name, which takes time and sometimes incurs fees.
• Limited asset protection. Because you typically retain control as trustee, a revocable trust offers little shield against creditors or lawsuits.
• Possible trustee fees. If you name a bank or trust company as trustee, expect ongoing administrative and investment advisory costs.
• No direct tax break. A revocable trust alone doesn’t reduce your tax liability; its assets are still yours for tax purposes.
• Complexity with unusual assets. Things like out-of-state property, closely held business interests, or certain investment accounts can complicate funding and require extra legal attention.

Who Owns Property in a Revocable Living Trust?

Legally, you do. As grantor, you retain ownership of everything in a revocable trust and remain responsible for reporting and paying taxes on it. That’s different from an irrevocable trust, where ownership genuinely transfers away from you once the trust is created.

Is a Trust Better Than a Will?

It depends on the size and complexity of your estate. A trust involves more upfront planning and cost, but offers more control over how and when assets are distributed, both during your lifetime and after. A will is often sufficient for smaller estates or straightforward distributions. Larger estates, or ones with more specific conditions attached to inheritances, tend to benefit more from a trust.

Why Work With an Estate Planning Attorney?

A few reasons it’s worth having a lawyer involved:

• Legal accuracy. An attorney makes sure your trust complies with Nevada law and holds up as intended.
• Customization. Your situation is specific to you; a template document rarely captures it well.
• Tax strategy. An attorney can help identify ways to reduce your estate’s tax exposure where applicable.
• Avoiding common mistakes. Estate planning has plenty of ways to go wrong that aren’t obvious until they cause a problem.
• Making sure probate is actually avoided. A trust only works as intended if it’s properly funded; an attorney helps confirm that step isn’t missed.

Contact Us

Our team at The Giuliani Law Firm is ready to answer your questions and help you take the first steps toward setting up a revocable living trust. We’re open five days a week, with after-hours consultations available by appointment. Contact us to schedule a free consultation about your will or trust, or call (702) 388-9800.

FAQs: Revocable Living Trust

What is the difference between a revocable living trust and a will?

A revocable living trust can help you avoid probate, keep your financial affairs private, and allow a successor trustee to manage your assets if you become incapacitated. A will only takes effect after death and typically goes through probate.

Can I be both the trustee and the beneficiary of my revocable living trust?

Yes. As grantor, you can serve as both trustee and beneficiary during your lifetime, keeping full control of the trust’s assets.

What happens if I become incapacitated and have a revocable living trust?

Your named successor trustee steps in to manage the trust and its assets, generally without needing a court-appointed guardian.

Do I need to fund my revocable living trust immediately after creating it?

Yes. The trust only controls assets that have actually been transferred into it, a process called funding. An unfunded trust won’t avoid probate for those assets.

Can I change or revoke my revocable living trust?

Yes, at any time, as long as you’re mentally competent to do so.

What does it cost to set up a revocable living trust?

Costs vary with the complexity of your estate and your attorney’s fees, but typically range from several hundred to several thousand dollars.

What happens if I leave assets out of the trust?

Anything not transferred into the trust generally goes through probate, unless a pour-over will or other estate planning document directs otherwise.

Can a revocable living trust reduce estate taxes?

Not by itself. But a trust can be structured, often alongside other strategies like a credit shelter trust, to help reduce estate tax exposure for larger estates.

Does a revocable living trust keep my estate private?

Unlike a will, which becomes part of the public record during probate, a trust’s contents and asset distribution stay private.

What happens to my revocable living trust after I die?

It becomes irrevocable, and your named successor trustee distributes assets according to your instructions, without going through probate.

This article provides general information about Nevada trust law and is not a substitute for legal advice. Every estate is different, so the specifics of your situation should be reviewed with a licensed attorney.