Revocable Living Trust
A revocable trust is a trust whereby provisions can be altered or canceled 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.
This type of agreement provides flexibility and income to the living grantor; he is able to adjust the provisions of the trust and earn income, all the while knowing that the estate will be transferred upon death.
Most people use living trusts to avoid probate. Probate is the court-supervised process of wrapping up a person's estate. Probate can be expensive, time-consuming, and is often more of a burden than a help. Property left through a living trust can pass to beneficiaries without probate.