What is the primary distinction between a revocable trust and an irrevocable trust?

The primary distinction between a revocable trust and an irrevocable trust lies in the level of control the grantor has over the trust once it is established. A revocable trust allows the grantor to modify or terminate the trust at any time, which means the grantor retains significant control over the assets placed within the trust. This flexibility can be advantageous for estate planning, as it allows the grantor to make changes as their circumstances or wishes evolve.

In contrast, an irrevocable trust is established in a manner that prevents the grantor from modifying or terminating it without the consent of the beneficiaries or a court. Once assets are transferred into an irrevocable trust, they are generally out of the grantor's control, which can provide benefits such as asset protection and tax advantages, but this comes at the cost of losing direct control over those assets.

Understanding this distinction is crucial for fiduciaries and estate planners to effectively advise their clients on the appropriate trust structures based on individual needs and goals.