Revocable Trust
A trust that can be modified or revoked during the grantor's lifetime, primarily used to avoid probate.
What is Living Trust?
A revocable trust (also called a revocable living trust or inter vivos trust) is a legal arrangement in which the grantor transfers assets into a trust while retaining full control to modify, revoke, or reclaim those assets at any time during their lifetime. At death, the trust becomes irrevocable and assets are distributed to beneficiaries per the trust terms — without going through probate. This is the primary advantage: probate avoidance provides privacy (probate records are public) and can save months of delay and thousands in legal fees. Because the grantor retains control, a revocable trust provides no protection against creditors or estate taxes during the grantor's lifetime.
Example
A California homeowner creates a revocable living trust and transfers their home, brokerage account, and bank accounts into it. They remain the trustee during their lifetime, maintaining full control. When they die, the successor trustee named in the trust distributes assets within weeks — bypassing California's probate process, which can take 12–18 months and cost 4% or more of the estate in attorney fees.
Source: Investopedia — Revocable Trust