You’ve heard that trusts can help you avoid probate, which is a long, time-consuming, and sometimes expensive process. However, you aren’t sure which kind of trust is right for you and your estate plan. Should you go with a revocable or irrevocable trust? You can learn the key differences between the two and then make your decision.
A Revocable vs. Irrevocable Trust
While you can change a revocable trust at any point throughout your life, you cannot change an irrevocable trust once you set it up. The ownership of the trust is not flexible with an irrevocable trust after it is first established. Additionally, when you pass away, the information about a revocable trust will be kept private amongst your trustee, beneficiaries, and other loved ones who are involved. But if you create an irrevocable trust, documentation of the creation of your trust could be recorded if your estate goes through probate or any other type of legal process.
Why Choose an Irrevocable Trust?
So, why would anyone want to set up an irrevocable trust? If you work in an industry where you are liable to lawsuits – such as medicine or the law – then your assets will be protected in an irrevocable trust. They will also be shielded from creditors. If you are at risk of losing your government benefits, you can put your assets into an irrevocable trust, and you can also use this kind of trust to minimize your estate taxes.
Reach Out to Legacy Law Group
If you need help with trusts, you can contact the estate planning attorneys at Legacy Law Group in Eastern Washington, Spokane Valley, and Spokane itself. Get in touch with us at (509) 315-8087.