What is the Difference Between Revocable and Irrevocable Trust?

The main difference between a revocable and an irrevocable trust lies in the grantor's ability to modify or terminate the trust after it has been created. Here are the key differences between the two types of trusts:

Revocable Trust:

• The grantor can change or revoke the trust at any time as long as they are living and of sound mind.
• The grantor often serves as the trustee, allowing for full control of the trust.
• Assets placed in a revocable trust are not protected from creditors or legal judgments.
• Changes can be made to the trust without the need for court or beneficiary approval.

Irrevocable Trust:

• The trust cannot be easily amended, changed, or terminated once it's signed, and it requires court or beneficiary approval to modify its terms.
• The grantor gives up control over the assets placed in the trust, which are protected from creditors and legal judgments.
• Irrevocable trusts can be more complicated to set up and may have more complex language and terms.

Both revocable and irrevocable trusts can help protect assets and allow the grantor to leave them to specific beneficiaries. Deciding which type of trust is best for your situation depends on your current circumstances and future goals, as well as the level of control and protection you need.

Comparative Table: Revocable vs Irrevocable Trust

Here is a table comparing the differences between revocable and irrevocable trusts:

Please note that this table provides a general overview and should not be considered legal advice. It is essential to consult with an estate planning attorney to determine the best type of trust for your specific situation.