Revocable or Living Trust:
A revocable or living trust is a trust that you can change or cancel during your lifetime. You control a revocable trust and the trust's earnings are consolidated into your income tax returns. You may continue to manage the assets, or your advisor will handle management of your assets under your supervision, and/or upon your disability.

A revocable trust can also be used to transfer assets at death, similar to a will, yet without the formal, court-supervised process of probate where your estate is open to public scrutiny. Once you pass away, your wishes are final, and thus the trust becomes irrevocable.

Irrevocable:
An irrevocable trust is a trust that cannot be changed or cancelled at any time. This trust is a separate legal entity and its own taxpayer. The terms of many irrevocable trusts, however, allow tremendous flexibility. While many irrevocable trusts come into being at death, irrevocable trusts set up before death are often used to hold life insurance policies, gifts of assets to be available to beneficiaries at a future time, or funds for current or future charitable contributions. To achieve beneficial tax results, many irrevocable trusts are written to follow patterns based on the rules in the Internal Revenue Code. The structure most suited to your needs can best be determined with the help of financial, legal and tax advisors who specialize in this field.