Revocable trusts and irrevocable trusts are two common types of trusts with significant differences, mainly related to trust flexibility and control. Flexibility:

• Revocable Trusts: In a revocable trust, the grantor (also known as the creator or trustor) typically has the ability to revoke or amend the trust at any time, change the distribution of trust assets, or even terminate the trust. This type of trust provides the grantor with greater flexibility and control as they can make changes as needed.
• Irrevocable Trusts: In contrast, once an irrevocable trust is established, the grantor usually cannot easily revoke or modify the trust’s terms. Changes to an irrevocable trust are generally only possible under specific legal conditions, with the consent of the beneficiaries, or with court approval. This type of trust is often more stable and less reversible.

Control:

• Revocable Trusts: Grantors typically retain more control in revocable trusts since they can alter the trust’s terms or terminate it at any time. This means grantors can adapt to financial or family changes as needed.
• Irrevocable Trusts: In irrevocable trusts, grantors typically lose direct control over trust assets once the trust is established. Trust assets usually belong to the beneficiaries once the trust is funded, and grantors no longer have direct ownership of these assets.

Tax and Financial Differences: Because revocable trusts often allow grantors to retain more power and control, there may be differences in how taxes and financial matters are handled in certain situations. Revocable trusts may be considered part of the grantor’s estate, potentially impacting tax planning and financial responsibility.