Should I Establish a Revocable Trust, Irrevocable Trust or Both?
If you have been researching living trusts you have probably seen the terms “revocable” and “irrevocable” trusts thrown around. Although there are a few similarities between the two, they are actually very different types of trusts used for different purposes.
Revocable Living Trusts
- You maintain control of your assets and have full access to your assets during your lifetime.
- Revocable Living Trusts avoid Probate.
- A living trust can be amended, revoked or restated.
- A Revocable Living Trust does not protect against lawsuits or creditors.
Irrevocable Asset Protection Trust
- Asset Protection Trusts protect against lawsuits and long-term care costs.
- There is a common misconception that an irrevocable trust cannot be amended, but that is not always the case. There are different kinds of irrevocable trusts and it depends on the type of irrevocable trust you are dealing with.
- Asset Protection Trusts allow you to maintain control of your assets until your death or disability.
Planning for the Future
Estate Planning is important for everyone. Whether you have $50,000 or $500,000, you still need to plan ahead. A properly designed estate plan protects what you have during your lifetime and provides instruction for the desired distribution of assets upon your death. In addition, planning ahead allows you to specify what your wishes are should you become physically or mentally incapable of making decisions for yourself.
Once you have an estate plan in place, it’s important to review your plan every couple of years to make sure it is current, and to make sure it still fulfills your wishes. Significant life events such as the birth of a child, a death in the family, a marriage, a divorce, or substantial financial changes warrant a review of your current estate plan.
Discuss Your Goals with an Estate Planning Attorney
West Michigan families interested in securing assets for future generations and establishing an estate plan that ensures their wishes are adhered to should consider contacting the Law Offices of David L. Carrier, P.C.
Estate planning professionals at our offices in Grand Rapids, Norton Shores, Holland, and Portage have extensive experience with all types of estate plans, including revocable and irrevocable trusts, and can help you understand your options and which estate planning vehicles are right for you. Call (616) 361-8400 to schedule a consultation. You can also join us during one of our free LifePlan Workshops.