Do I need a Revocable or Irrevocable Trust?

Posted on August 12, 2022

I often get asked, "What's the difference between revocable and irrevocable trusts?"

A revocable trust is one that allows you to modify its provisions and add or remove assets held in trust at any time. An irrevocable trust on the other hand theoretically cannot be modified or revoked. What you gain with this kind of planning is additional security for your assets and potential tax savings.

So should you be afraid of an irrevocable trust? Generally not! Irrevocable trusts allow you to make choices about who can access your assets and how they are used. Moreover, despite the name, irrevocable trusts when drafted properly can be updated at any time to assure that they continue to meet your needs. This is ideal if you want to control your financial life while protecting your assets from mismanagement or predators. Most perceived downsides to irrevocable trusts can be mitigated or eliminated through careful planning and consultation with a qualified legal advisor.

Having said all of that, there is no one-size-fits-all answer to this question as a skilled attorney will identify the ideal arrangement and tailor an estate plan such that it specifically addresses your individual needs and preferences.

Attorneys, are you offering asset protection to your clients? If not, you should be! Call me to discuss.