In the absence of specified revocation powers, a trust is assumed to be what?

In the context of trusts, when there are no specified revocation powers granted, the trust is generally assumed to be irrevocable. This means that once the trust is established, the grantor does not retain the power to alter or terminate it. Irrevocability ensures that the assets within the trust are protected from the grantor's creditors and that the terms of the trust will be honored as intended, even if circumstances change.

The presumption of irrevocability is significant because it strongly influences how assets are managed, distributed, and insulated from estate taxes and creditors. Beneficiaries can have greater confidence in their rights to the trust property, as the trust’s terms are set and cannot be unilaterally changed by the grantor.

On the other hand, if a trust were amendable or revocable, parties involved would inherently understand that terms could change or the trust itself could be dissolved, which is not the case when irrevocability is assumed. This clear delineation helps to establish the nature and longevity of the trust, ensuring that all parties involved have a clear understanding of their rights and responsibilities.