Why are the rules for irrevocable trusts different from those for revocable trusts?
The difference between irrevocable and revocable trusts is that a revocable trust is an extension of the individual and their assets are still owned by the individual, while irrevocable trusts are a separate entity that owns the assets. This is why personal assets cannot be counted towards the assets of an irrevocable trust, and why irrevocable trust assets cannot be counted towards personal net worth.