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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Revocable trust  

Definition 1.

A trust that may altered as many times as desired in which income-producing property passes directly to the beneficiaries at the time of the grantor's death. Since the arrangement can be altered at any time, the assets are considered part of the grantor's estate and they are taxed as such.
 

Definition 2.

A trust that may be changed or canceled by its grantor or by another person. Does not avoid estate taxes as an irrevocable trust does.
 

Definition 3.

A trust whereby provisions can be altered or cancelled dependent on the grantor. During the life of the trust, income earned is distributed to the grantor, and only after death does property transfer to the beneficiaries.
 
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