When it comes to estate planning, one of the most important decisions you’ll make is whether to establish a revocable or irrevocable trust. Both have their advantages and disadvantages, so it’s important to understand the difference before making a decision. In this blog, we will discuss the key differences between revocable and irrevocable trusts, as well as which might be right for you.
Analyzing the difference between a revocable and irrevocable trust, most people are familiar with revocable trusts, also known as living trusts. A revocable trust is one that can be modified at any time, without the consent of the beneficiaries. This means that you can change the terms of the trust, or even dissolve it entirely, if you so choose. The main advantage of a revocable trust is that it gives you a great deal of flexibility.
Irrevocable trusts, on the other hand, cannot be modified after they are created. Digging into the difference between a revocable and irrevocable trust, it means that once you establish an irrevocable trust, you cannot change your mind about the terms or beneficiaries. The only way to make changes to an irrevocable trust is with the consent of all the beneficiaries.
Which is Better?
So, beyond the difference between a revocable and irrevocable trust, which type of trust is right for you? It depends on your individual circumstances. If you want the flexibility to make changes to your estate plan down the road, a revocable trust might be a good option. On the other hand, if you’re looking for asset protection or tax advantages, an irrevocable trust might be a better choice.
Ensure Your Future is Prepared for and Protected
The difference between a revocable and irrevocable trust? No matter what type you choose, it’s important to work with an experienced estate planning attorney to ensure that your assets are protected and your wishes are carried out according to your desires. Contact our office today to schedule a consultation. We can help you determine which type of trust is right for you and create a customized estate plan that meets your needs.