Death and Taxes are the two unpleasant things to hear about yet the guaranteed things in life. No matter how distressing the terms are, we got to manage at least the financial implications that come with them.
If you ask for one helpful solution to the problem, I would say: trusts. But then again, revocable or irrevocable trust? Which one is right for you?
If you are stuck in a similar situation, this article has your back.
What is Meant by Revocable or Irrevocable Trust?
As the name implies, the terms of revocable trusts can be altered or canceled, while irrevocable trusts cannot be modified or terminated.
Benefits of Revocable Trusts
Creating a revocable trust can get you the following benefits:
- You can use the property for your benefit
- You are capable of naming unrelated people living outside the city as the primary administrator of your estate
- You can avoid probate, which indeed costs time and money
- Another plus point for revocable trust is that at the time of the trust creator’s death, the assets in it can be utilized to pay estate taxes and administration expenses
Benefits of Irrevocable Trusts
Irrevocable trusts are difficult to change, but people do prefer them over revocable trusts. Here’s why:
- The assets in an irrevocable trust are protected from creditors
- The assets are not subject to capital gains taxes
- The assets in an irrevocable trust are not included in the grantor’s estate and can save you from tax issues, which is not the case with the revocable trust.
A Knowledgeable Attorney is the Solution
If you want to decide whether the revocable or irrevocable trust is best for you, it is necessary to review your estate.
Fortunately, a knowledgeable estate planning attorney can do that for you. Contact Keystone Asset Protection and Estate Planning today and choose the best for yourself.