Significant Difference Between Revocable and Irrevocable Trust
When we become old, we try to create an estate planning strategy to secure the future of both our kids and ourselves. It is one of the most important things you can do to get the best outcome. There is no doubt that the estate planning procedure is a daunting task, but with the help of an estate planning attorney in OKC, you don’t need to worry much.
Making a trust is the best way to provide benefits to all of your beneficiaries while it can also protect your assets after your death. Anyway, during the procedure, you may hear some technical terms from your lawyer, like irrevocable trust. You may wonder what it is.
But don’t fret; your lawyer will help you to understand the types of trust and associated advantages and disadvantages. Continue reading this article to learn more about the difference between a revocable and irrevocable trust and which one you should choose.
What Are the Features of Trusts and What Do They Do?
Regardless of the type of trust, it has three parts: the creator, trustee and beneficiary. In the trust, grantors and their estate planning attorneys make the documents about their properties and transfer their assets to the trust. The trustee invests in the trust fund, use the property to fulfill the beneficiary’s requirements and pays the costs by following the trust’s instructions.
What Estate Planning Attorneys Say About Revocable Trust?
After making the trust, when the creator makes some changes in the will during the timeframe in sound mind, it is known as a revocable trust. Since the creator controls the property during their lifetime, it is undoubtedly a popular choice. On a special note, you are no longer the owner after funding a regular trust. The revocable trust becomes irrevocable when the grantor dies.
What Are the Advantages of Revocable Trust?
● You can modify or alter the conditions anytime in sound mind.
● You can create trust by avoiding the legal process called probate. It also saves your money in that time.
● The estate planning attorney takes care of the entire legal procedure and ensures you don’t need to submit original documents.
What Is An Irrevocable Trust?
When the grantor signs the trust deed, they cannot quickly change, alter or modify anything in the will. Once you transfer all your properties to the trust, you cannot reverse them anymore. Also, the trust creator has no control over making decisions.
Why Would you Want an Irrevocable Trust?
● When they want to become eligible to participate in government programs
● Reduce the estate taxes
● Protect their properties from creditors.
What Are the Differences Between Revocable and Irrevocable Trust?
One of the most significant differences between revocable and irrevocable trust is that in a revocable trust, the creator can make some changes by consulting with an estate planning attorney in OKC anytime in a sound mind. But once the grantor signs the irrevocable trust, they are not allowed to do modifications. In addition, the creator doesn’t have any control over the property.
Making a revocable trust means you cannot protect your assets from creditors during your lifetime. On the other hand, in an irrevocable trust, all of your properties will be safe from creditors; an estate planning attorney will ensure that. If you belong to a high-profile career, in that case, an irrevocable trust is the suitable option.
Hire Estate Planning Attorney to Reassure Legal Answers
Since both have their own positive and negative aspects, an individual should make the decision very carefully. While the revocable trust can avoid probate and expedite the process, the irrevocable trust can protect the property from creditors.
So, before taking any decision, they should know what to expect from it and take action accordingly. Contact us at Reneau Law Group in OKC if you are considering making your property trust.
**Disclaimer: The above article does not imply a relationship between attorney and client, nor does it aim to provide any legal advice.