Revocable Trust v. Irrevocable Trust

 

Trusts allow you to avoid probate, minimize taxes, provide organization, maintain control and provide for yourself and your heirs. In its most simple terms, a Trust is a book of instructions wherein you explain what to do and when do it.

 

While there are many types of Trusts, the major distinction is whether they are revocable or irrevocable. Let’s take a look at both so you have the necessary information:

 

Revocable Trusts:

 

Revocable Trusts are also known as “Living Trusts” because they benefit you during your lifetime. You can alter, change, modify or revoke them if your circumstances or goals change.

 

  • You stay in control of your Revocable Trust. You can transfer property into a Trust and take it out, serve as the trustee and be the beneficiary. You have full control. Most Kerlin Walsh Law clients like this!

 

  • You select successor trustees to manage the Trust if you become incapacitated or die. Most of our clients like that they, not the courts, select who’s in charge when they need help.

 

  • Your Trust assets avoid probate. This makes it difficult for creditors to access assets since they must petition a court for an order to get access to the assets. This protects our client’s beneficiaries’ inheritances.

 

Irrevocable Trusts:

 

When Irrevocable Trusts are used, assets are transferred out of the trustmaker’s estate and into the name of the trust. You, as the trustmaker, cannot alter, change, modify or revoke this trust after execution. It’s irrevocable and you usually can’t be in control.

 

  • Irrevocable Trust assets have increased asset protection and are kept out of the reach of creditors.

 

  • Taxes are often reduced because, in most cases, Irrevocable Trust assets are no longer part of your estate.

 

  • Trust protectors can modify your Trust if your goals become frustrated.

 

Our experienced Estate Planning Attorneys at Kerlin Walsh Law can help you figure out whether a Revocable or Irrevocable Trust is a good fit for you and your loved ones. If you’re from Worth, Chicago Ridge, Alsip, Tinley Park, Palos Heights, Oak Lawn, Palos Hills, Orland Park Evergreen Park or Hickory Hills, give Kerlin Walsh Law a call at 877.718.7201 to schedule a consultation today!