Property OwnershipIntermediateDelaware Exam

What is a 'revocable living trust' in Delaware estate planning?

AA trust that cannot be changed once established

BA trust established during the grantor's lifetime that can be modified or revoked, and allows property to pass to beneficiaries outside of probate upon deathCorrect

CA trust that always automatically and immediately revokes the instant the grantor dies, with no further action needed, as generally applied statewide across Delaware

DA trust managed by a bank for investment purposes

Why A trust established during the grantor's lifetime that can be modified or revoked, and allows property to pass to beneficiaries outside of probate upon death Is Correct

Answer B: A trust established during the grantor's lifetime that can be modified or revoked, and allows property to pass to beneficiaries outside of probate upon death

A revocable living trust is created by the grantor during their lifetime, can be modified or revoked at will, and allows property to pass directly to beneficiaries upon the grantor's death without going through probate — providing privacy and efficiency in estate administration.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

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Key Terms to Know

Joint Tenancy

Co-ownership where two or more people hold equal, undivided interests with the right of survivorship — when one owner dies, their share passes to the surviving owners.

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Easement

A non-possessory right to use another person's land for a specific purpose.

Encumbrance

Any claim, lien, charge, or liability attached to real property that affects its value or limits its use.