A revocable living trust is a legal instrument that you create to hold title to your assets during your lifetime and to manage and dispose of them after your death.
Who Is Involved in a Trust Agreement?
(1) the grantor or settlor who transfers assets into the trust,
(2) the trustee who holds title to those assets, and
(3) the beneficiary who receives the income and principal of the trust.
While living, you are typically all 3 parties. If you become disabled or pass away, a ‘successor trustee’ steps in to manage the assets. The trustee or trustees may or may not be the beneficiary/beneficiaries.
After your pass away, the assets can be distributed to the beneficiaries right away or the trustee may manage them (depending on how the trust is written).
You can modify or terminate a revocable living trust during your lifetime as long as you are mentally capable of doing so.