Do you need a revocable or irrevocable trust? No matter what happens throughout your life, you are going to leave behind assets for someone when you die. You should always leave behind a legal document to guide how to distribute those assets. Another thing you should do to protect your assets is to put your assets into a trust.
Knowing which trust to go with can be complicated. The differences between revocable and irrevocable living trusts are small, but they can also have huge impacts.
Keep reading below to learn which would probably be right for you.
A Revocable Living Trust Means More Flexibility
With a revocable living trust, you can plan for the future while adapting to the present. Situations can change after you put together a will that may affect how you want to distribute your belongings. When you get a revocable living trust, you can adjust your last wishes as you want.
Keep reading below to learn more about the advantages of getting a revocable living trust.
You Can Change What’s In It
The biggest advantage of a revocable living trust is that you can change what goes into it.
You can set up different trusts for different people, and adjust how much goes into each. That way, you have complete control over how your assets are distributed among your loved ones, without anyone interfering.
You Will Not Have to Deal with Probate Court
One of the things that can interfere in how your loved ones get the things you leave behind is probate court. This is a specialized court that handles the property and debts of deceased persons. They usually have the final say as to how things are distributed after a person dies.
With a revocable trust, you can rest assured your property will not ever be touched by the courts. Instead, it will simply go into the hands of your designated beneficiaries.
An Irrevocable Trust Is a Safeguard
Unlike a revocable trust, you have less control over irrevocable trusts. Once you put things into an irrevocable trust, you can never take them out. That means that if a situation changes, you will not be able to adapt to it or control who gets what, so make sure you are confident with what you put into one.
Yet, an irrevocable trust protects your assets from creditors. If you leave behind debt, creditors may try to pay for it by seizing assets before your beneficiaries get them. You can prevent this by storing them in an irrevocable trust.
An irrevocable trust is entirely irrevocable. Once something is in it, it is there to stay no matter what creditors or you have to say about.
You Should Trust the Trust You Choose
No matter which kind of trust you decide to go with, make sure that you trust who you elect to be in charge of it. Whether it is an irrevocable or revocable living trust, it has to be handled by someone so make sure you trust that person to handle it honestly and carefully.
And for that, we are here.
Contact us today to schedule a consultation.