Do revocable trusts earn interest

Revocable trusts themselves do not earn interest; rather, the assets held within a revocable trust can generate interest, dividends, or other income, depending on the type of investments included in the trust. For example, if the trust holds cash in a savings account, it may earn interest from that account. The income generated is typically reported on the grantor’s personal tax return since the trust is revocable and the grantor retains control over the assets.