What distinguishes a revocable trust from an irrevocable trust?

The distinction between a revocable trust and an irrevocable trust lies in the flexibility and control that the grantor retains over the trust's assets. A revocable trust allows the grantor the ability to modify, amend, or entirely cancel the trust at any time during their lifetime. This means that the assets within the trust can be removed or altered, giving the grantor significant control over how their assets are managed and distributed.

In contrast, an irrevocable trust cannot be altered or revoked once it has been established, meaning the grantor relinquishes control over the assets placed in that trust. This fundamental difference in control is what defines the distinction between the two types of trusts.

The other options imply characteristics that do not accurately represent revocable trusts. For example, stating that a revocable trust cannot be canceled or is permanent does not reflect the grantor's ability to modify or revoke the trust. Likewise, whether a trust earns interest or not is not inherently tied to its revocable or irrevocable status.