Getting your estate plan together requires you to consider the best option to get assets from you to your loved ones. There are different ways to do this. While some people may name the assets in the will and pass them down that way, it’s not always the best option.
For some people, using trusts is a better way. There are two categories of trusts to consider: revocable and irrevocable. Understanding a few points about these might help you to make the decision that’s best for your needs.
Ability to change terms varies
As the names imply, a revocable trust can be changed, but an irrevocable trust can’t be changed unless permission is granted by those named in the trust. This means that you retain more control over the assets in a revocable trust than you do in an irrevocable trust.
Some offer protection from creditors
Because you don’t have control over the assets in an irrevocable trust, the contents of the trust are protected from creditor claims against you. Revocable trusts don’t offer that protection because you have control over the assets. This makes revocable trusts a better choice for people who have a profession that involves a risk of being sued.
Probate isn’t necessary
When you put assets in a trust, they don’t have to go through probate. This means your loved ones can receive what’s due to them faster and with less expense.
Ensuring you have the trusts set up and funded properly is a primary concern. Working with someone familiar with these matters is beneficial since they can get everything taken care of for you.