Which type of trust is commonly revocable and is used to manage the grantor's affairs during incapacity?

• A. Revocable Living
• B. Credit shelter
• C. Irrevocable
• D. Charitable remainder

Answer: (A)

The main idea here is planning for when you can’t handle your own affairs. A revocable living trust is designed for that scenario: it’s created and funded during your lifetime, and you (the grantor) can change or revoke it at any time. A key feature is naming a successor trustee who can manage the trust assets and your financial matters if you become incapacitated, without needing court guardianship. This lets your affairs be handled smoothly and privately, since the trust agreement already spells out who steps in and how.

Why this fits best: you retain control while you’re able, and you switch to automatic management by the successor trustee only if incapacity occurs, which is exactly what protects you and simplifies ongoing management.

Why the others don’t fit as well: a credit shelter trust is typically used for estate tax planning and is not primarily about incapacity management; an irrevocable trust cannot be easily changed or revoked and is not typically chosen to handle ongoing affairs during incapacity; a charitable remainder trust focuses on charitable gifts and income streams rather than personal incapacity planning.