Attorney Thomas B. Burton explains the difference between a Revocable Living Trust and an Irrevocable Trust and talks about some of the situations where each type of trust is appropriate as part of your estate plan.
Transcript of Video: What’s the Difference Between a Revocable Trust and an Irrevocable Trust?
Today's topic what's the difference
between a revocable trust and an
irrevocable trust well the difference is
in the name which you guessed but it
basically means just what it says
a revocable living trust or revocable
trust is the common probate avoidance
trust we use as a Will substitute it
means as long as you're alive you can
revoke the trust in whole or in part and
change it completely an irrevocable
trust is just that it means once you
form it you cannot revoke it this is
used only in specific situations
sometimes for asset protection sometimes
for estate tax planning other times for
Medicaid planning you shouldn't be
necessarily scared of an irrevocable
trust but make sure you understand it
before you form one for your assets in
addition it may be a wise choice for
certain assets and not others in general
a revocable living trust can contain a
lot of your assets but talk carefully
with your lawyer about which assets
would be appropriate for an irrevocable
trust since it is much harder to change
once it is set up with the right
drafting we can use an irrevocable trust
to achieve your goals and still have
some flexibility but again discuss your
specific situation with your lawyer
Great question!
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Transcript and captions provided for ease of access for the hearing impaired.
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