What's the Difference Between a Revocable and an Irrevocable Trust?

Last week's Fund Forum about setting up a trust obviously struck a nerve with our readers.

The column dealt mainly with setting up irrevocable trusts, leading reader Rey Barry to ask, "Why was there no mention of revocable family trusts?" So let's look at the differences between these two types of trusts.

The biggest distinction is that an irrevocable trust cannot be changed or revoked once you create it, as its name implies. A revocable trust can be changed as often as you like while you're still alive. ...