As you’re going through the estate planning process, you’re learning about revocable and irrevocable trusts. While you’ve found that there are advantages for both, you also know there are disadvantages.
Here are the positives and negatives of an irrevocable trust so you can decide if it’s right for you.
The Benefits of an Irrevocable Trust
An irrevocable trust has different upsides. For example, they can shield you from creditors who are after your assets, help you save on taxes, and ensure you are eligible for government benefits. If any of these situations apply to you, you may want to use an irrevocable trust instead of a revocable trust.
The Downsides of an Irrevocable Trust
The main downside of an irrevocable trust is that once you set it up, you no longer have control over your assets. You can’t designate yourself as the trustee to get around this, either. This means that once you set it up, you can’t change anything.
Let’s say you designate your daughter as the trustee of your irrevocable trust, but she begins acting irrationally and you no longer have faith in her. You will not have any control over the situation. This is one of the reasons why people go with a revocable trust instead. You never know what the future could bring, for better or for worse.
Talking With an Estate Planning Attorney
Before making a definitive decision on a revocable or irrevocable trust, make sure you talk to an estate planning attorney for guidance. They will let you know what the best move is for your circumstances.
Contacting Legacy Law Group
If you need help creating a revocable or irrevocable 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.