Irrevocable vs. Revocable Trusts
Finder Law Serves Clients Across Jefferson City, Columbia, and Central Missouri
When determining the type of estate planning that best suits your needs, there are many different options to choose from. One common question is what the difference is between an Irrevocable Trust & a Revocable Trust.
First, let’s explore what a trust is. A trust is a legal document that specifies how your assets are to be managed and distributed to your beneficiaries without going through probate court. The Grantor, which is the person creating the trust, will choose a Trustee who will be in charge of distributing your assets per the guidelines in your trust. Depending on the terms of the trust, it can go into effect during your lifetime, after your death, or in the case of incapacitation.
Now, let’s look at the difference between an Irrevocable Trust & a Revocable Trust:

Irrevocable Trust
This trust cannot be changed or terminated once it is executed, even by the Grantor. The benefit of this type of trust is that it is often shielded from estate taxes. If you have a very large estate, this could save your beneficiaries substantial tax money. It can also protect assets from creditors.
Revocable Trust
This trust is made during your lifetime & can be changed at any time. It can also be terminated all-together if you choose. This is the most common type of trust because it allows flexibility for you to alter it based on ever-changing life circumstances and relationships.
Planning for the future of your assets is important & estate planning is the best way to do that. Contact an experienced estate attorney, like Daniel Finder at Finder Law, LLC, to create a plan that best suits your needs and wishes. Every person’s situation is different, so we can help you determine the type of plan you need to accomplish your goals.
