Revocable trust is Illusory and Subject to Right of Election.

A South Carolina ( S.C. Code Ann. § 62-7-112 ) statute,while affirming the validity of revocable inter vivos trusts, also stated thatsuch trusts may be found to be illusory for purposes of a surviving spouse’selective share rights. The South Carolina Supreme Court has held that thesettlor of a revocable trust who retained the power to revoke, received thetrust income, had to power to name substitute or successor co-trustees and to revokethe requirement that he act with a co-trustee had such extensive powers overthe trust that though valid it was indeed illusory and part of the probateestate solely for purposes of the surviving spouse’s right of election. It alsoheld that the statute was constitutional.  Dreherv. Dreher, 634 S.E.2d 646 (2006).