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Revocable, or living, trusts can be modified after they are created. Revocable trusts are easier to set up than irrevocable trusts. Irrevocable trusts cannot be modified after they are created, or at least they are very difficult to modify.

How much does a Trust cost in New Jersey? In New Jersey, the cost of setting up a basic Revocable Living Trust generally ranges from $1,000 to $3,000. More complex trusts may cost even more.

The key difference is that a living trust, or revocable trust, can be revoked, or changed at any time during the trustor's lifetime vs an irrevocable trust is just that, irrevocable, unchanging.

Limitations: Requires adherence to trust document's instructions on asset assignments. Joint assets, including certain IRAs and retirement plans, cannot be placed into a one-person trust. No complete tax avoidance: Total avoidance of taxes is rarely possible with living trusts, though there may be ways to reduce them.

The use of a Last Will in NJ is more common than a Trust. Not so in other states like Florida and New York. Advocates of a trust over a Last Will argue that a trust avoids probate. A will is subject to probate but probate in New Jersey is simple and inexpensive.

Irrevocable trusts are generally set up to minimize estate taxes, access government benefits, and protect assets. This is in contrast to a revocable trust, which allows the grantor to modify the trust, but loses certain benefits such as creditor protection.