Accredited Wealth Management Advisor (AWMA) Exam 2 Practice Test

A revocable living trust is designed to manage your assets during life and pass them to your beneficiaries after death, with the benefit of probate avoidance and ongoing flexibility because you can alter or revoke the trust at any time. In practice, you fund the trust with assets, appoint a trustee to handle them while you’re alive (often you and then a successor trustee after death or incapacity), and designate how and to whom they should be distributed when you’re gone. Because the trust is revocable, you retain control and can change beneficiaries, add or remove assets, or dissolve the trust entirely if your circumstances change. This setup helps avoid probate for assets placed in the trust, offering a quicker, more private transfer to heirs and a smoother plan if you become incapacitated. It’s not about tax deductions or permanently removing assets from your control, and it won’t automatically cover every asset—some assets still pass outside the trust (like those with designated beneficiaries) and the trust itself doesn’t provide tax benefits.