Wills and Trusts Bar Practice Exam

A revocable trust is characterized by the fact that the settlor retains a significant degree of control over the assets placed within the trust. Specifically, the settlor can serve as the trustee, which allows them to manage the trust assets and make decisions regarding the trust's operation for an indefinite period of time. The ability of the settlor to act as trustee is a fundamental feature that distinguishes revocable trusts from irrevocable trusts, where the settlor typically relinquishes control over the assets.

Additionally, a revocable trust provides the settlor the flexibility to amend or revoke the trust according to their wishes, which is a critical aspect of its revocable nature. Thus, the characteristic of allowing the settlor to act as trustee indefinitely aligns perfectly with the defining qualities of a revocable trust. In contrast, options suggesting a complete transfer of control (which fits more with irrevocable trusts) or removing access to income generated by the trust (which does not accurately reflect the flexible nature of a revocable trust) do not capture the essence of a revocable trust. The notion that the trust cannot be terminated is also incorrect, as revocable trusts can be revoked or modified by the settlor at any time.