HBCU Money™ B-School: Revocable Trust

A revocable trust also sometimes known as or referred to as a revocable living trust, sets provisions altered, changed, or even canceled dependent upon the grantor of the trust. During the “life” of the revocable trust, income earned is distributed to the grantor or grantors, and only after the grantor’s death does property held within it transfer to the stated beneficiaries.

Investopedia explains a revocable trust as, “This type of agreement provides flexibility and income to the living grantor; he or she is able to adjust the provisions of the trust and earn income, all the while knowing that the estate will be transferred upon death.”