What is the difference between a Revocable and an Irrevocable Trust?

A revocable trust can be terminated or modified by the donor at any time without the permission of the beneficiary. Since the grantor is acting as a trustee, the trust’s value is considered in their personal estate when determining estate taxes. An irrevocable trust, without permission of the beneficiary, may not be canceled or amended by the donor because they have given up ownership of the trust’s contents. Irrevocable trusts have many different types, such as bypass trust, special needs trust, irrevocable life insurance trust, and charitable trust, and are used primary for asset protection, charitable estate planning, and estate tax reduction.