Revocable vs Irrevocable Trusts

Revocable and irrevocable trusts are both commonly forms that are used with estate planning. Both of these types of trusts have unique advantages and disadvantages. Here are a few things to consider about both of these types of trusts.

Revocable Trust

The revocable trust is primarily intended to help you avoid probate. By putting your assets into this type of trust, you can decide who is going to get your assets when you die without having to send your family to probate court. With this type of trust, you can also revoke it and change it at any point while you are still alive.

Irrevocable Trust

With the irrevocable trust, you can also avoid probate. However, as the name suggests, you will not be able to change the trust once you have created it. This is a tool that can be used in order to eliminate estate taxes. You are completely transferring your ownership to an independent trustee and therefore, the assets in the trust will not be considered as part of your estate. Another advantage of an irrevocable trust is that you will be able to protect the assets from creditors. This type of trust has several benefits when compared to the revocable trust.

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