Trusts are a great way to protect your assets and ensure your wishes are followed after you’re gone. There are two main types of trusts: revocable and irrevocable. Each type of trust comes with its own set of advantages and disadvantages, and it’s important to understand the differences between the two.
Irrevocable and revocable trusts both have various trusts within them that serve different purposes. Because of this, you must consider your goals for the trust so you can determine which one will be the most appropriate.
A revocable trust gives you the flexibility to make changes or even revoke the trust entirely. You retain control over the assets in the trust and can access them whenever you need. You also have the ability to modify the terms of the trust at any time. It allows you to protect your assets during your lifetime and ensure your wishes are followed after you’re gone.
An irrevocable trust is permanent. Once you create the trust, you can’t change the terms or revoke it. You also give up control of the assets in the trust, which provides some protection from your creditors. This type of trust is often used to protect assets after your death. This is usually created to protect assets after death and to eliminate creditors staking claims against them.
Ultimately, a trust is only one part of your estate plan. Having a comprehensive plan ensures that your wishes are followed so your loved ones can be cared for after you pass away. Working with someone who’s familiar with complex estate planning matters is beneficial.