Main Difference: Ability to Make Changes
- Revocable Trust: The grantor (creator) may make changes during their lifetime
- Irrevocable Trust: The grantor may not make changes during their lifetime
Why Choose an Irrevocable Trust?
Despite the lack of flexibility, irrevocable trusts are chosen for two main reasons:
Asset Protection
Provides protection for trust assets and beneficiaries. Learn more about protecting your inheritance.
Tax Advantages
Example: If you have stock worth $100 per share that you believe will appreciate to $5,000 per share, transferring it to an irrevocable trust today allows that appreciation to occur outside your estate, potentially saving significant estate taxes.
Understand the tax implications of current law changes when making trust decisions.
