What is the difference between revocable and irrevocable trusts?

The biggest difference between revocable trusts and irrevocable trusts is that a revocable trust's terms and stipulations can be modified at any time, whereas an irrevocable trust's terms can't be changed after set up unless all beneficiaries agree. Maintain control of assets. Protection in case of incapacity. Avoids probate. Preserves privacy.

Is a revocable trust a good choice?

If you want to maintain control over your assets while enjoying some of the benefits of a trust, such as avoiding probate and having someone you trust manage your assets if you become incapacitated, then a revocable trust could be a good option. If you want creditor or estate tax protection, you may want to consider an irrevocable trust.

Are revocable trusts taxable?

And while your revocable trust assets pass outside of probate, they are generally still considered part of your taxable estate and as a result, it is possible estate tax will have to be paid on them. Revocable Trust Vs. Irrevocable Trust: Examples Here are some examples highlighting the difference between revocable and irrevocable trusts: