What is the difference between a revokeable and irrevocable trust?

In Michigan, a trust is a legal agreement that creates a fiduciary relationship between a trustee, the property owner, and the beneficiaries. A trust can either be revoked or irrevocable. A revocable trust allows the trustor to change or revoke the trust at any time. Revocable trusts are often used to manage assets during the lifetime of the trustor. The trustor may also control how the assets are distributed after their death. The trustor may amend the trust and/or add beneficiaries or take away beneficiaries. An irrevocable trust, on the other hand, cannot be modified or revoked once it is established. This type of trust is generally used for estate planning purposes, as it allows the trustor to transfer ownership of their assets while still maintaining control over how the assets are distributed upon their death. It also protects the assets from creditors or lawsuits. Once an irrevocable trust is established, the trustor no longer owns the assets in the trust. This means that the trustor cannot change the terms of the trust, nor can they revoke or terminate it. The only way that the trustor can modify an irrevocable trust is with a valid court order or the consent of all beneficiaries. In summary, a revocable trust allows the trustor to modify or terminate the trust at any time, while an irrevocable trust cannot be modified or terminated once it is created. Both types of trusts are used for estate planning purposes, but they each have their benefits and drawbacks.

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What is the difference between a revokeable and irrevocable trust?

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