Creating a comprehensive estate plan is one of the most helpful steps you can take when it comes to protect your assets and your wishes. With your estate plan, you can dictate how your property is distributed and where you money goes after you are gone, but you can also set up a trust to manage money in a particular way now.
If you are considering setting up a trust, you need to think about what you want that trust to do and whether you want to have any control of that trust after setting it up. In terms of control, you will likely be considering one of two types of trusts: irrevocable and revocable.
As noted in this U.S. News and World Report article, the difference between these two types of trusts boils down to what you want to do after it is in place. You can change revocable trusts; you cannot change irrevocable trusts.
Let’s imagine you want to set up a trust for your kids and you intend to place property into that trust. If you have no intention of ever retrieving that property and no longer want to retain individual ownership of the property, an irrevocable trust can be a good option. If you are less sure about what you want to do with that property and want to retain some freedom to reclaim it or transfer it, a revocable trust would allow you to do this.
Readers should understand that this is a basic explanation of the difference between these two types of trusts. Before you make any decisions on setting up any kind of trust, you will want to more thoroughly discuss your wishes and goals for a trust with an attorney. Legal guidance can prove to be crucial when it comes to learning about your estate planning options and the resources available to help you protect your assets.