Revocable vs Irrevocable

What's the difference?

What is a Revocable Trust?

A revocable trust is a legal arrangement that allows you to manage your assets during your lifetime and transfer them to beneficiaries after your death, all while avoiding probate. You can change or cancel the trust at any time, which gives you flexibility and control. This type of trust is commonly used by individuals or couples who want privacy, smoother asset transfer, and incapacity planning. It’s especially helpful for those who own property in multiple states or want to reduce the burden on their loved ones.

What is a Irrevocable Trust?

An irrevocable trust is a legal tool where the grantor permanently gives up control of assets placed in the trust, meaning the terms generally can’t be changed. It’s often used to protect assets from creditors, reduce estate taxes, or help qualify for Medicaid. People who may benefit include those planning for long-term care, parents of children with special needs, or individuals with large life insurance policies. Because the assets are no longer in the grantor’s name, they offer protection and potential tax benefits.

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