Revocable trusts are trusts in which provisions can be altered or canceled dependent on the grantor (or the originator) of the trust. During the life of the trust, income earned by the trust is distributed to the grantor, and only after death does property transfer to the beneficiaries of the trust.
Irrevocable trusts are trusts in which its terms cannot be modified, amended or terminated without the permission of the grantor’s named beneficiary or beneficiaries. The grantor, having effectively transferred all ownership of assets into the trust, legally removes all of their rights of ownership to the assets and the trust.
| Pros | Cons | |
| Revocable | Flexibility/control for grantor | No tax advantage |
| Irrevocable | Estate tax avoidance/reduction | Lack of flexibility/control for grantor |
