A revocable trust and living trust are separate terms that describe the same thing: a trust in which the terms can be changed at any time. An irrevocable trust describes a trust that cannot be modified after it is created without the consent of the beneficiaries.

There is no difference between a trust and a living trust. The person who manages the assets of a trust is called a trustee, who manages the assets based on the terms of the trust document. In estate planning, living trusts, also known as an intervivos trust, is the most common type of trust.

A revocable living trust is a trust document created by an individual that can be changed over time. Revocable living trusts are used to avoid probate and to protect the privacy of the trust owner and beneficiaries of the trust as well as minimize estate taxes.

When it comes to protection of assets, an irrevocable trust is far better than a revocable trust. Again, the reason for this is that if the trust is revocable, an individual who created the trust retains complete control over all trust assets. This property is then truly protected by being in the irrevocable trust..

Irrevocable trusts are an important tool in many people’s estate plan. They can be used to lock-in your estate tax exemption before it drops, keep appreciation on assets from inflating your taxable estate, protect assets from creditors, and even make you eligible for benefit programs like Medicaid.

Trusts and Bank Accounts You might have a checking account, savings account and a certificate of deposit. You can put any or all of these into a living trust. However, this isn’t necessary to avoid probate. Instead, you can name a payable-on-death beneficiary for bank accounts.

Inheritance Advantages Putting your house in an irrevocable trust removes it from your estate, reveals NOLO. Unlike placing assets in an revocable trust, your house is safe from creditors and from estate tax. When you die, your share of the house goes to the trust so your spouse never takes legal ownership.

Under an irrevocable trust, legal ownership of the trust is held by a trustee. At the same time, the grantor gives up certain rights to the trust.

The bottom line is that if a trust is revocable it can generally be amended and turned into an irrevocable one. Many living trusts automatically convert to ones that cannot be amended once the grantor dies. A contingency is a condition that needs to be met before funds will be allowed to be distributed to the beneficiary from the irrevocable trust.

A revocable living trust, known simply as a living trust, is now preferred over a will by many consumers and professionals. While it is similar to a will in that it has instructions for what you want to happen to your assets after you die, it also contains instructions in the event you become incapacitated.

Why you should get a Living Trust. A revocable living trust enables you to avoid probate, keep your estate private, and reduce or eliminate estate taxes, as well as ensures your assets quickly transfer according to your wishes upon your death. With a revocable living trust, no court action is involved, and the property is distributed privately.

There are three ways in which you can modify your revocable living trust, including: Creating a trust amendment to attach to the original trust agreement. An amendment is your best option when the change you wish to make is minor and the trust has not previously been amended, or the previous amendment was also minor. Creating a trust restatement.