What is the difference between "revocable" and "irrevocable" trusts?

Revocable trusts are characterized by the grantor's ability to modify, amend, or completely revoke the trust at any time during their lifetime, as long as they are mentally competent. This flexibility allows the grantor to adapt to changing circumstances, such as altering beneficiaries or changing the terms of the trust based on evolving financial situations or family dynamics.

In contrast, irrevocable trusts, once established, cannot be easily altered or revoked by the grantor. This permanence serves specific purposes, including potentially reducing the taxable estate and providing protections from creditors, but it also means that the grantor relinquishes control over the assets placed in the trust.

Therefore, the statement about the ability to alter or revoke revocable trusts accurately captures their defining feature and clarifies the essential difference between the two types of trusts.