Revocable and irrevocable trusts are some of the most common trusts used in the field of estate planning .  Both trusts can be either funded or unfunded to meet the specific needs of you and your family members.  A revocable trust or living trust can be created for the purposes of avoiding probate, acting as a pourover trust when you die, and can facilitate the handling of your assets in the event of incompetency.  Most revocable trusts can be created so that you, as the grantor, can also act as a trustee and an income beneficiary.  The main advantage of a revocable trust is that current transfers of property made to the trust can be revoked in the future which allows you to retain flexibility over the use of your property.  However, a revocable trust does little to reduce your estate tax burden in the event of your death due to your retained right to revoke transfers to the trust.  Irrevocable trusts are trusts that are created for the purposes of estate tax reduction, asset protection, and charitable estate planning.  Irrevocable trusts are primarily created so that individuals with large taxable estates can remove certain assets from their gross estate thus reducing estate tax liability.  It is important to note that a transfer to this type of trust cannot be revoked in the future by the grantor and you may also be subject to gift taxation on the taxable value of the asset transfer to the irrevocable trust.  Contact our office if you need assistance in determining which type of trust may be more suitable for you and your family.