Estate planning can involve a number of legal documents. One of the most important ones you’ll come across is a trust. A trust can be revocable or irrevocable, and finding out the difference between the two is critical before you decide which one you want to use. Here’s some more information.
What Is a Trust?
A trust is a fiduciary arrangement that allows a trustee, who is a third party, to hold assets for a beneficiary. It can hold assets like real estate, investments, and cash that you plan on handing down to your loved ones once you pass away. With a trust, you can avoid probate, a lengthy and costly process that can delay your assets from being allocated.
The Difference Between a Revocable and Irrevocable Trust
A revocable trust is one that you can change anytime. You can add assets or take them out, change your beneficiaries, or make other modifications whenever you want. An irrevocable trust cannot be changed without the permission of the beneficiary or beneficiaries.
Since you don’t have as much control over an irrevocable trust, you may be wondering why people use them. If you work in a field where you’re vulnerable to lawsuits, such as the medical or legal industry, you can shield your assets in an irrevocable trust. Additionally, you can protect your assets from creditors if you have an irrevocable trust.
Contacting Legacy Law Group for Help
If you need help determining whether you should use an irrevocable or revocable trust, 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.