Certified Trust and Fiduciary Advisor (CTFA) Practice Exam

A revocable trust may be changed by the trustor, while an irrevocable trust cannot, which highlights the key distinction between these two types of trusts. The trustor, who is the individual establishing the trust, retains the ability to modify or revoke the terms of a revocable trust at any time during their lifetime. This flexibility allows the trustor to adapt the trust to changing circumstances or preferences, ensuring that the trust continues to meet their objectives.

In contrast, once an irrevocable trust is established, the trustor relinquishes the right to make modifications or revoke the trust. This structure is often used for estate planning purposes or asset protection, as it removes the assets from the trustor's estate, which may have tax advantages or benefits in terms of eligibility for certain benefits.

The other options provided do not accurately capture the fundamental differences between revocable and irrevocable trusts, which is pivotal when advising clients on estate planning strategies.