Final answer:
Revoking a trust while the settlor is alive allows them to regain control over the assets; however, upon the settlor's death, the trust usually becomes irrevocable, and the terms cannot be changed.
Step-by-step explanation:
Revoking a trust can have significant implications for the settlor, the individual who creates the trust. During the life of the settlor, if the trust is revocable, they may disband the trust, regaining full control and ownership over the assets placed within it.
However, once the settlor passes away, the trust often becomes irrevocable, meaning the assets and instructions within the trust are fixed and cannot be altered.
The process of revocation is governed by the trust agreement itself and applicable state law.
If the settlor revokes the trust while alive and competent, they may be free to do as they wish with their assets; however, upon death, their ability to affect the trust ceases, as the trust's terms become set in stone, handled by the executor and trustees to distribute assets to heirs as per the instructions laid out by the deceased.