Trusts are commonly used in estate planning, but many people are unsure how different types of trusts work.

Two of the most common types are revocable trusts and irrevocable trusts.

Revocable Trusts

A revocable trust allows the person who created the trust to maintain control over the assets.

They can typically:

• Change the terms of the trust
• Add or remove assets
• Revoke the trust entirely

Because the creator maintains control, the assets are usually still considered part of their estate.

Irrevocable Trusts

An irrevocable trust generally cannot be changed once it is created.

Assets placed in the trust are no longer owned by the person who created it.

This structure may provide benefits such as asset protection or tax advantages.

Choosing the Right Trust

The right type of trust depends on the individual’s financial goals and circumstances. An attorney can help determine which structure is appropriate.