Trust Terminology

These terms can get confusing; here is a breakdown:

Term	Definition
Revocable trust	A trust that can be revoked.
Revocable living trust	A trust that can be revoked and that takes effect during the life of the grantor. Becomes irrevocable at the death of the grantor. Usually made to avoid probate.
Irrevocable trust	A trust that cannot be revoked.
Irrevocable living trust	A trust that cannot be revoked and that takes effect during the life of the grantor.  Usually made to transfer wealth, protect assets, or reduce taxes.
Testamentary trust	A trust created during the life of the grantor, but that takes effect at the grantor’s death.  Usually made as part of a will – for example, a child’s trust made to name a trustee for property left to a minor.