Will, trust, and estate law is very complex, so it is common for people to have questions about revocable vs irrevocable trust when putting together an estate plan. This type of law is so complex in fact that there are specific attorneys who focus their legal practice exclusively in this area. |
If you are interested in getting a trust drafted, it is best to consult with a trust attorney. However, this article will help give you some initial information on these two types of trusts and their associated benefits and disadvantages.
This should help give you some background prior to consulting with a lawyer.
Irrevocable trusts are usually used in very specific circumstances. These types of trusts are very permanent in nature and can’t be easily changed after they are created. Often times these are used in circumstances where people are planning for a family member with special needs.
Additionally, some individuals will use an irrevocable trust for certain tax or credit advantages. These trusts are very complex and are not necessary for most people. In most cases a revocable living trust can be used to provide the needed protection in your estate plan.
While the permanent nature of the irrevocable trust may be good for some circumstances, in other situations flexibility may be more important. If flexibility is important to you, you may want to consider a revocable trust.
Unlike an irrevocable trust, a revocable living trust can be changed at any time while you are alive. Often times people are attracted to this because they are planning so far in the future. As a result, they like having the peace of mind knowing that they can change it at any point if their circumstances change.
For example, if you have a house in your trust and you want to sell it, you can do so no problem. Additionally, if you want to add beneficiaries or remove one, you can do this as well.
Another aspect of a living trust that people like is that it allows their family to receive their assets without having to go through probate. Probate can be a long, stressful, and expensive process for a family to have to endure while mourning the loss of a loved one.
Additionally, a revocable trust ensures that the transfer of your assets is private so only the people named in the trust have the right to know its contents.
Lastly, a revocable trust can help you plan for situations where you may become incapacitated before your die. It is very common for people to become incapacitated before they pass away which is one of the reasons why people are attracted to this estate planning document.
The trust comes into effect from the moment it is signed. As a result, if something happens to you where you can no longer make decisions on your own, your successor trustee can step in to manage your trust and all of its assets on your behalf.
When analyzing a revocable vs irrevocable trust, it’s not a matter of which is better than the other. They are different and both have their benefits that are very useful in certain circumstances.
If you are interested in drafting one of these documents, it’s best to speak with a trust attorney because they can customize the information based on your needs.
About Author -Jim Turner is a USA based author of Legal issues related to estate planning, will & trust , business law and elder law .Jim can be reached through Rochester Law Center . Jim Turner does his best writing on these topics Revocable vs Irrevocable Trust that helps users to find the best solutions to their FAQ on estate planning , probate , living trust and more about legal family issues .
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