Revocable Living Trusts have all of the following features EXCEPT that they are:

• A. Fully amendable and cancelable.
• B. Record-keeping vehicles.
• C. Tax savings vehicles.
• D. Investment management vehicles.

Answer: (C)

Understanding revocable living trusts: these are designed for flexibility and control rather than tax benefits. They can be fully amended or canceled, so you can adjust terms, beneficiaries, or the asset list as life changes. They also serve as record-keeping vehicles, consolidating ownership and simplifying administration and probate planning. As investment management vehicles, a trustee can manage the trust’s assets and investments, coordinating how money is invested and used. However, they do not provide tax savings. Because the trust is revocable, the grantor maintains control, and the tax treatment generally flows through to the grantor’s personal return rather than offering separate tax advantages. So, the statement that revocable living trusts are tax savings vehicles isn’t correct.