Before establishing any estate planning documents, you must do a deep dive into your financial portfolio. You must also flesh out what you want to get out of your estate plan. By doing so, you may better determine what tools you should prioritize. For instance, you may resolve whether a revocable living trust or an irrevocable living trust is the best fit for you. Continue reading to learn how a revocable and irrevocable living trust can be advantageous and how an experienced Putnam County trusts attorney at the Law Office of Andres D. Gil, PLLC can help determine which type is best for you to establish.
How can a revocable living trust be advantageous?
For one, a revocable living trust has you (i.e., the grantor) transfer your ownership rights over certain assets to that of the trust. Then, if properly funded, your loved ones (i.e., the beneficiaries) may inherit these assets at the time in which you instructed. Ultimately, the distribution of these assets is conducted by an individual whom you trust (i.e., the trustee).
Understandably so, you may be wary of “giving up” certain assets you have worked so hard to earn for the sake of funding the trust. However, you may rest easier knowing that a revocable living trust may be advantageous in the following ways:
- A revocable living trust is beneficial if you wish for a quick and easy setup.
- A revocable living trust is beneficial if you wish to maintain the right to modify its terms and conditions after its creation.
- A revocable living trust is beneficial if you wish to simplify your estate plan and eliminate the need to appoint a conservator for your minor beneficiaries.
How can an irrevocable living trust be beneficial?
An irrevocable living trust is similarly funded by assets that are to eventually be distributed by your assigned trustee to your designated beneficiaries. However, the key difference is that this estate planning document is irreversible the moment you provide your signature. You may be worried about giving up more control than you would with a revocable living trust; and in such a permanent way for that matter. But you may still opt for this trust type due to the following advantages:
- An irrevocable living trust may be in your best interest if you wish to reap certain estate tax benefits that a revocable living trust cannot offer you.
- An irrevocable living trust may be in your best interest if you wish to protect your beneficiaries from potential creditors, bankruptcies, lawsuits, divorces, etc.
- An irrevocable living trust may be in your best interest if you work in a certain line of work that makes you vulnerable to potential lawsuits (i.e., medicine, law, etc).
Whenever you are ready, a skilled Putnam County estate planning attorney is here to provide legal assistance. So please schedule your initial consultation with us at the Law Office of Andres D. Gil, PLLC today.