Revocable or Irrevocable Trust: Which is Right for You?

Trusts are a cornerstone of an effective Estate Plan. Through Trusts, you are able to avoid the often lengthy and costly Probate process and maintain greater authority over the distribution of your assets.

However, not all Trusts are made the same. There are numerous types of Trust but each fits into one of two main categories: Revocable or Irrevocable Trust. The question remains: which one aligns best with your Estate Planning objectives?

Revocable Trusts Offer More Flexibility

A Revocable Trust is a more fluid type of Trust. It provides you with the liberty to add or remove assets with relative ease. This is not true for Irrevocable Trusts. The very purpose of an Irrevocable Trust is that, once established and funded per the Trust documents, it becomes a fixed element of your plan. Taking assets out of an Irrevocable Trust usually demands considerable legal maneuvering.

On the other hand, a Revocable Trust provides flexibility to adapt to life’s unpredictable nature. Whether it’s a change in financial status, familial circumstances, or just a shift in your wishes, a Revocable Trust accommodates these changes.

Irrevocable Trusts Protect You and Your Assets

So, why would you opt for an Irrevocable Trust? The lack of flexibility is often more than made up for in the several financial advantages of this type of Trust.

By placing your assets within an Irrevocable Trust, they are effectively removed from your net worth. This allows you to reduce your estate tax burden, preserving a larger portion of your wealth for your own use and your beneficiaries. Also, removing the value of these assets from your net worth allows you to preserve eligibility for certain government programs, such as Medicaid.

Lastly, though flexibility is limited and you can’t remove assets as you please, any income generated by the Trust remains accessible to you.

Choose the Right Tools for Your Estate Plan

Navigating the complexities of Estate Planning is no easy task. That’s where the team at Charleston Estate Planning Law Firm comes in.

We work hard to establish and protect your legacy and your hard work, ensuring that every aspect of your Estate Plan connects with your unique needs and goals. No two individuals are the same, so why should their Estate Plans be?Whether a Revocable or Irrevocable Trust suits you better, our commitment is to help you find the right elements for your plan that provide peace of mind for you and your loved ones. Contact Charleston Estate Planning Law Firm and we’ll help you plan for the future.

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Charleston Estate Planning Law Firm

At the Charleston Estate Planning Law Firm, we believe that estate planning is all about protecting your family and loved ones in the event of your incapacity or death.

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