A revocable trust, often called a revocable living trust, is an estate planning vehicle in which the grantor transfers assets into a trust that they can amend, revoke, or terminate during their lifetime. The grantor typically serves as initial trustee and beneficiary, retaining control over investments and distributions. At the grantor's death or incapacity, a successor trustee takes over, managing and distributing assets according to the trust terms. Revocable trusts do not provide income or estate tax savings by themselves, because assets remain part of the grantor's taxable estate, but they offer probate avoidance, continuity of management, and privacy.

Advisors work with attorneys to fund revocable trusts with brokerage accounts, real estate, and sometimes life insurance proceeds payable to the trust. They explain to clients that the trust can simplify administration after death, particularly when assets span multiple states or complex family situations. Beneficiary designations on retirement accounts and life insurance may be directed to a revocable trust when coordinated planning is needed. Because the trust is revocable, clients can adjust terms as circumstances change. Understanding revocable trusts helps advisors integrate investment, insurance, and estate planning strategies into a cohesive plan that balances flexibility with orderly asset transfer.