What is the difference between a revocable and an irrevocable trust?

In Virginia, trusts and estates law covers the legal aspects of managing and transferring wealth. Trusts, in particular, are a common feature for inheritance planning. At the most basic level, a trust is a legal mechanism that allows assets to be held and managed by a third party on behalf of a person or organization. Two of the most common types of trusts are revocable and irrevocable trusts. A revocable trust is one that the trustmaker (the person who establishes the trust) can modify or revoke at any time. This type of trust offers flexibility and control, since the trustmaker can make changes to the trust so long as they are still alive. An irrevocable trust is one that cannot be modified or revoked, even by the trustmaker. This makes estate planning more secure since the trustmaker has no authority to make changes to the trust once it is set up. The trustmaker also loses any control over the assets held in the trust and does not benefit from them directly. Overall, revocable trusts offer greater flexibility than irrevocable trusts, but irrevocable trusts provide more security for estate planning. Both types of trusts can be beneficial in the right circumstances, depending on the trustmaker’s needs and goals.

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What is the difference between a revocable and an irrevocable trust?

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