Revocable Trust: A revocable trust allows the grantor — the person who created the trust — to change or end the trust at any point during their lifetime. Revocable trusts are also known as living trust or revocable living trust. These trust are set up by you while you’re still alive. Often, the assets in a revocable living trust transfer to your beneficiaries after you pass away. One downside of a revocable trust is that the assets held in one are considered personal assets to creditors and for estate tax purposes. This means if you owe money when you pass away, creditors can access your trust’s assets to pay off those debts. 

Irrevocable Trust: An irrevocable trust is a type of trust in which the grantor transfers assets to the trust, relinquishing ownership and control over those assets. Unlike a revocable trust, an irrevocable trust cannot be modified, amended, or revoked by the grantor without the consent of the beneficiaries or a court order.  Once assets are placed in an irrevocable trust, they are no longer considered part of the grantor’s estate. This means that the grantor typically cannot access, sell, or change the terms of the assets held within the trust. The trust is managed by a trustee who administers the assets in accordance with the terms and purposes outlined in the trust document.