Do I need a Revocable or Irrevocable Trust?
People sometimes tell me that they want to create an irrevocable trust. What they really mean is that they want to create a revocable trust (also called a living trust) that cannot be changed after they pass away.
What, then, is an irrevocable trust?
Trusts that are created from the start as irrevocable trusts are not very common. This is because, once created, an irrevocable trust cannot be changed, modified or cancelled. These trusts have significant tax consequences, and so they are usually tax motivated. Since most people don’t have assets approaching the current estate tax exemption of $11M per person or $22M for a couple, estate taxes are not a concern for most of us. Sometimes though, dynasty and income tax planning are a motivating factor in a creating an irrevocable trust.
Reach out to me here to talk about what best suits your needs.