Trusts: Revocable and Irrevocable
Trusts, both revocable and irrevocable, offer a variety of options that allow you to tailor your estate plan
to your specific needs and desires. If you have an estate that extends beyond a basic Last Will and
Testament, you should understand the differences between these two types of Trusts.
When a Trust is revocable, it can be changed any time while you are alive. A Revocable Living Trust is an
alternate to a standard Last Will and Testament. With a Revocable Trust you can leave an inheritance for
your family, while helping them avoid the prolonged route of probate.
Because a Revocable Trust is changeable, it allows you to add new beneficiaries and property as needed.
For small changes, you can alter your Trust with an amendment. For larger changes you can use an
amendment and restatement.
With a Revocable Trust, all items within the Trust are still under your control while you are alive.
Although items are titled in the name of your Trust, they belong to you. This is beneficial if you wish to
maintain power of your possessions. It does offer two disadvantages. With a Revocable Trust there is no
protection from creditors and all holdings will be part of your taxable estate upon your death.
An Irrevocable Trust, often used to leave an inheritance, is one that cannot be changed after it is
created. For this reason, you must be sure of your wishes when you create an Irrevocable Trust.
Once you place funds or assets into this type of Trust, they no longer belong to you and you cannot use
them for your benefit. This can be a disadvantage if you need those items later, but it does provide
three advantages: trust assets are safe from your creditors, safe from your loved ones creditors and will
not be included in the calculation of estate taxes.
Experienced estate planning attorneys Seattle WA of the Byrd Garrett PLLC offers estate planning and
business planning resources to residents of Seattle WA. To learn more about these free resources,
please visit http://www.byrdgarrett.com today.