Revocable and Irrevocable Trusts and the difference between them
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Revocable V. Irrevocable Trusts

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The difference between Revocable. Irrevocable Trusts

Revocable Living Trusts

A Revocable Living Trust, Living Trust or Inter Vivos Trust, is a fancy way to describe a trust that can be changed at any time.

Common Uses for Revocable Living Trusts:

  1. Planning for Mental Disability
  1. Avoiding Probate
  2. Protection of Privacy

Things to consider:

In a revocable trust, assets funded into the trust are still considered your own personal assets for creditor and estate tax purposes. This means that a revocable trust offers no creditor protection if you are sued, all of the trust assets will be considered yours for Medicaid planning purposes, and all assets held in the name of the trust at the time of your death will be subject to state estate taxes and federal estate taxes, as well as state inheritance taxes.

Irrevocable Trusts

An irrevocable trust is the revocable trust’s opposite.  That is, a trust that can’t be changed once the agreement has been signed, or a revocable trust that is drafted to become irrevocable after the Trustor dies, or after some other specific point in time, delineated in the document.

Common Uses for Irrevocable Trusts:

  1. Estate Tax Reduction
  2. Asset Protection
  3. Charitable Estate Planning

For more information on Estate Planning and Trusts, contact the Law Office of Brain C. Tanko, Esq. at (702) 367-6636

 

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