Planning for the Future: Revocable Trust vs Irrevocable Trust

Studies show that the events of 2020 have led to an increase in the demand for estate planning.

Have you considered how to protect your assets for the future? What changes have you made over the past year in this area? Who can help with trusts if you have not created one yet?

After working hard for what you have, it is important to secure what the future of those assets looks like. Keep reading to learn about trusts and the difference between a revocable trust vs irrevocable trust:

Trust Lawyers in Indianapolis Area

A trust or estate planning lawyer helps guide you in your efforts to make intentions for your estate after you have passed or are no longer able to make decisions. We use a variety of estate planning tools in order to help you lay out your wishes and take the burden off of your closest family members in the future. While people commonly think this is an end-of-life process, you can create a trust at any time that you feel is necessary for your assets and future.

Carefully determining how to handle each part of the estate is important because you have to decide how you want your assets to be handle. Designated a trusted power of attorney will serve as a decision-maker in certain areas of your estate. They can have financial powers as well as determining medical measures in some situations.

Hire a Law Firm That Is a Trusted Advisor

Similar to finding an HVAC repair personnel or a mechanic, you want to thoroughly do research prior to deciding on the firm that you will be creating your trust with. Asking family and friends for advice on the firms that they have worked with in the past can be helpful.

When you are trusting someone to advise you on how to handle the future of your estate, you should treat it as an interview. Come prepared with your goals but also have a list of questions that you need to be answered before making any legal agreements.

Reading the previous reviews and testimonials for the clients the firm has worked with is also helpful in giving insight into what the experience will be like. Looking for words and phrases that indicate trust and satisfaction with the experience is key.

We are a leading firm in central and southern Indiana, serving over 90 counties throughout the state. Our extensive background of clients has allowed us to have experience helping in many areas and we employ professionals that are some of the best in the field.

What Is the Difference Between a Revocable Trust vs Irrevocable Trust

The biggest difference between a revocable and irrevocable trust is that a revocable trust can be changed at any time. This is not the case when an irrevocable trust is written.

The ability to make changes can be important if you are looking to designate a new beneficiary or amend any rules you previously had in place for how your estate will be handled. This could happen as the result of fallout within your family or a new financial situation that you did not anticipate. This also remains to be a private matter that is not accessible by public record for others to know to whom you are leaving your estate to.

Regardless of which trust that you choose, it is important to think through all of its components prior to making it official. Think of a revocable trust as one that allows you to plan for the “what ifs” and not be set on “what is”.

While the terms of an irrevocable trust can rarely be changed, the big draw is the tax benefit. These are often used to remove the property’s value from a person’s estate when they pass and therefore can’t be taxed.

Why Choose a Trust Over a Will

There are many benefits to having a trust for your estate.

First, the agreement begins once it is signed and not once you pass. This is important for any power of attorney decisions that need to be made because a will won’t outline the details of your estate prior to death.

Another benefit is the avoidance of legal battle or legal process after death occurs. Since the beneficiaries have already been outlined and the details are decided in the trust, there is no need to appear in court and pay the legal fees that can be associated with carrying out a will.

As previously mentioned, no one can search the public record and find the details of your estate. This is important if you are looking to keep the arrangement within your family and private to those that you trust.

You also have the ability to add specific instructions to protect the people that you are serving as beneficiaries in your trust. If they get into a bad situation, like an addiction, for example, then you can have pre-determined rules in place that prevent them from controlling certain assets in that condition.

Contact Us to Discuss a Trust Today

Now that you have read more about the difference between a revocable trust vs irrevocable trust, you can take action today.

In order for us to properly consult on this matter, it is important for you to call us to set up an appointment to discuss what you are looking to achieve.