What is a revocable trust primarily used for?

A revocable trust, often referred to as a living trust, is primarily utilized for the purpose of avoiding probate and potentially reducing estate taxes. When a person creates a revocable trust, they maintain control over the assets placed within it, meaning they can alter or dissolve the trust at any time during their lifetime. This flexibility is a significant feature of revocable trusts.

One of the main benefits of a revocable trust is that, upon the grantor's death, the assets held in the trust are not subject to the probate process. This can save time and costs associated with probate court and maintain privacy regarding the distribution of assets. Additionally, while a revocable trust is not specifically designed to reduce estate taxes, it can sometimes lead to outcomes that minimize tax liabilities depending on how the trust is structured and interacts with other estate planning strategies.

The other aspects of the options provided do not align with the primary purpose of a revocable trust. While it does allow for transferring ownership of assets upon the grantor's death, this is not its main focus. Establishing permanent property rights is more aligned with irrevocable trusts, and life insurance benefits are generally managed through different vehicles rather than through a revocable trust itself. Thus, option B accurately captures the principal