Revocable Vs. Irrevocable Living Trusts

For assistance understanding the comparison of revocable vs. irrevocable living trusts, look to Tolison & Williams, Attorneys at Law, LLC. I have extensive experience representing clients for a broad range of estate planning concerns, including the selection and drafting of trust documents. I am dedicated to helping individuals with comprehensive plans that satisfy their individual needs and goals. I will explain your options and advise you regarding which type of trust would be best for your unique situation.

In order to begin selecting the right trust for your estate, it is vital to understand the advantages and disadvantages of each type:

• Advantages:
  • You can change trust beneficiaries or modify terms through a trust amendment.
  • You can revoke the entire agreement or change all of the contents with a trust amendment and restatement.
• Disadvantages:
  • The trust offers no creditor protection in the event you are sued.
  • Assets will still be considered your personal assets, making them subject to state, federal and inheritance taxes.
  • All of the trust assets will be considered yours for Medicaid or other long-term care planning purposes.

• Advantages:
  • Assets are not subject to state, federal and inheritance taxes.
  • Assets will not prevent your eligibility for Medicaid or other long-term care plans.
• Disadvantages:
  • You are giving up total control of the allocated assets.
  • You cannot cancel or amend the trust after the agreement is signed.

To discuss your estate planning concerns, including the differences between revocable and irrevocable living trusts, contact my firm at 303-500-7706 or by email using the online form.