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What are revocable and irrevocable trusts?

On Behalf of | Feb 3, 2025 | Trusts & Estates

Creating an estate plan makes it possible for you to let your loved ones know what to do with your assets after you pass away. This plan can include several components, one of which is trusts. 

A trust is a legal tool that makes it easier for your loved ones to get their inheritance after you die. You can set the terms of the trust to suit your needs. When you start to look into trusts, you’ll see that each one is categorized as either revocable or irrevocable. Knowing what each of these terms means is critical so you can choose the best option.

Who controls the trust?

When you establish a revocable trust, you retain control of the assets that are part of the trust. You can change the trust as you see fit, including canceling it if you feel the need to do so. This can be done as many times as you want.

Control of the assets in an irrevocable trust transfers to the trustee when you establish and fund this type of trust. You can’t change the terms or cancel the trust unless you have permission from either the court or from all named beneficiaries. 

What are the benefits and limitations?

Placing assets into a trust can get your loved ones their inheritance as quickly and efficiently as possible. Trusts don’t have to go through the probate process, which also provides your beneficiaries with a bit of privacy since the terms of the trust aren’t made public unless the beneficiaries make them known.

Irrevocable trusts have other benefits that aren’t present in revocable trusts. One of the most valuable for some individuals is that your creditors can’t claim the assets in the trust. This is possible only because you don’t have control over the assets in the trust.

Creating a comprehensive estate plan is one of the only ways you can make your wishes known. Working with someone who’s familiar with estate planning and your circumstances is beneficial because they can explain the options for your estate.