What is the difference between a revocable and irrevocable trust?

The key difference between a revocable trust and an irrevocable trust is how much control you keep over the assets.

A revocable living trust can be changed, updated, or revoked at any time during your life. You stay in full control of the assets in the trust, which makes this type ideal for avoiding probate, maintaining privacy, and managing your estate efficiently.

An irrevocable trust, by contrast, generally cannot be changed or revoked once it’s established and funded. Because you give up control of the assets, irrevocable trusts are often used for asset protection, tax planning, or long-term care and benefit eligibility.

One common type of irrevocable trust is a special needs trust (SNT), which allows assets to be set aside for a person with disabilities without affecting their eligibility for government benefits such as SSI or Medi-Cal. Special needs trusts can be:

-          Third-party (springing) special needs trusts, created by someone else—often a parent or family member—for the benefit of a disabled person, and typically “spring” into effect when the creator passes away.

-          - First-party (self-settled) special needs trusts, funded with the disabled person’s own assets (for example, from an inheritance or settlement), and required by law to be irrevocable.

For most Californians, a revocable trust is the foundation of a standard estate plan, while irrevocable trusts, including special needs trusts, serve more specialized planning goals and should be created with professional legal guidance.