The most basic difference between these two categories is that, as the name suggests, a Revocable Trust can be altered, adapted, changed, or terminated, i.e. revoked, whereas an Irrevocable Trust cannot.
This flexibility is what makes Revocable Trusts appealing. Grantors can still benefit from the assets in the trust while they are living, and the provisions of the trust can be altered at the grantor’s discretion.
Assets transferred into a Revocable Trust can also avoid probate. However, properly setting up and maintaining a Revocable Trust takes time and money. Funding a trust during a grantor’s lifetime requires reregistering securities, real property, and other assets in the name of the trust. Any property or assets not titled in the trust’s name, will still be subject to probate.
Finally, to clarify a point of undue confusion: “Revocable Trust” and “Revocable Living Trust” are used interchangeably and mean the same thing.