What is the difference between a revocable trust and a irrevocable trust? The best answer we have for you is, if you are even wondering what the differences are, it is best that you schedule a consultation with us. We recommend a consultation for many reason, but most of all to learn your situation, and answer your specific questions. We are also able to advise you on what is best for you after a consultation.
To explain the different types of trusts simply is that irrevocable trusts generally can’t be modified. Also, once property I placed in an irrevocable trust, it is now the property of the trust, and not the person(s). There are also certain protections with irrevocable trusts when it comes to creditors and law suits; since the assets that were placed in the irrevocable trust no longer belong to a person, rather are the property of the actual irrevocable trust, creditors can’t go after any assets within the trust. Also there are different issues regarding taxes we can discuss in a consultation — such as the estate taxes are calculated differently after you pass with assets included in an irrevocable trust. Often these trusts will even have their own EIN tax number.
A revocable trust is a trust where a person still owns all assets, and not the trust. This I also a trust that can usually be changed. The assets in a revocable trust do not have the same creditor protection since the assets are owned by a person(s) and not the trust. Many revocable trust do not have a trustee.
There are benefits to both types of trusts; schedule a consultation with us to determine which trust is best for your estate.