As you begin exploring your estate planning options on how to protect your assets, you’ll likely consider either revocable or irrevocable trusts. Trusts are an excellent tool for those who want to pass their estates and assets to beneficiaries without having to go through the costly, stressful, time-consuming probate process. Comparing the benefits and downsides of revocable trusts and irrevocable trusts can help guide you to make the best, most informed decisions for both your family and their future.
Revocable trusts give individuals the most control over their assets during their lifetime. These are the types of trusts that most people create for themselves. After you establish the trust and transfer assets to it, you can change the trust at any time. You may choose to change the beneficiaries, adjust the terms of the trust, or completely undo it if it no longer meets your needs. However, as the trustee, you are still considered the owner of those assets. If you have substantial debt, these assets may be seized by creditors if they get a court order. Additionally, the assets in your trust can work against you for Medi-Cal planning.
Irrevocable trusts grant individuals much less freedom and flexibility after they are established. The initial process is the same. You establish the trust, set the terms, name beneficiaries, and transfer assets. However, after that, you give up all control. Once you have transferred assets, you cannot change the terms of the trust, access the assets, or change beneficiaries. While there may be some options to alter the terms of irrevocable trusts, such efforts are not easy.
Each type of trust provides different benefits. You have to think about what you are willing to give up and what is non-negotiable for you.
Both options are viable choices for those with estate planning needs. Consult the team at Werner Law Firm to discuss your options and figure out which type of trust best suits your needs - call us today at 1-800-752-9937.
Founded in 1975 by L. Rob Werner and serving California for over 48 years, our dedicated attorneys are available for clients, friends, and family members to receive the legal help they need and deserve. You can trust in our experience and reputation to help navigate you through your unique legal matters.
Whether you need help creating a living trust or navigating probate, our living trust law firm's compassionate team of estate planning lawyers and probate lawyers are here to help you and ready to answer your questions.
Our goal is to make your case as easy as possible for you. Hiring a lawyer can be a daunting task, but it doesn’t have to be. From the moment you contact our firm, through the final resolution of your case, our goal is to make the process easy and understandable. We cannot change the fact that probate is a long and complicated process, but through our Werner Law Firm Difference, we strive to go out of our way to keep you informed of your case through every step of the way. We are constantly refining our processes and procedures for a more streamlined and calm client experience. Our goal is to have you feel like a burden was lifted from your shoulders, and that we made the whole process an easy one
If you're dealing with a legal matter, we urge you to schedule a free initial appointment today and join the many satisfied clients who have contacted Werner Law Firm.
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Newport Beach, California 92660