What is the difference between a revocable living trust and an irrevocable trust?

An irrevocable trust differs from a revocable trust because the assets you hold in it are no longer considered part of your taxable estate.  It can provide protection from creditors, predators, lawsuits and divorces during your lifetime. Most people who set up an irrevocable trust do so in addition to setting up a revocable trust.  It’s important to be strategic about which assets are placed in an irrevocable trust because the owner loses some flexibility and control over those assets during his or her lifetime.