When people’s attention eventually turns to planning their estate, they are suddenly confronted with a new language replete with the kind of legalese and Latin terms that only a lawyer can love, and that’s mainly because lawyers are typically the only people who can understand it. Among the more mysterious terms are the various types of trusts which are used in estate planning; and two of the more popular trusts in particular – Revocable Trusts and Irrevocable Trusts – are often confused with one another. Here we demystify these two popular and very useful estate planning tools.
The Difference between Revocable and Irrevocable Trusts in a Nutshell
The clue to understanding the primary difference between a revocable trust and an irrevocable trust is in their names:
Revocable – able to be invalidated
Irrevocable – impossible to revoke