Revocable vs. Irrevocable Trusts: Which One Do You Actually Need?
Estate planning is an important step for protecting your assets and your loved ones. One tool commonly used in estate planning is a trust. Two of the most common types are revocable trusts and irrevocable trusts. While both can be effective, they serve different purposes.
Here are a few key differences to help you understand which trust may be right for you:
1. Control Over Assets.
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2. Flexibility vs. Protection.
Revocable trusts offer flexibility and are often used to help avoid probate and provide smoother management of assets if you become incapacitated. Irrevocable trusts, while less flexible, may offer stronger asset protection and can be useful for tax planning or Medicaid planning.
3. Tax and Creditor Considerations
Assets held in a revocable trust are usually still considered part of your estate for tax and creditor purposes. Assets transferred into an irrevocable trust are typically removed from your estate, which can provide added protection depending on your circumstances.
We Can Help You Make The Right Choice For Your Family
There is no one-size-fits-all trust. The right choice depends on your goals, family situation, and long-term plans. If you are considering creating or updating a trust, it may be helpful to speak with an experienced estate planning attorney.
At York Gaskill, we assist Georgia families with estate planning tailored to their needs. Call our law firm in Gwinnett at (678) 697-6789 to schedule a consultation or contact us online to learn more.
