In general, during a person’s lifetime, there are no income-tax savings attributable to earnings of the revocable trust. Because you retain total control over the assets and can revoke the trust if you so desire, you are taxed on all the income. However, tax laws concerning trusts, trust income, and what occurs after you die vary a great deal based on how the trust was set up. It’s important to work closely with an attorney when creating a trust.