Should I Create a Revocable or Irrevocable Trust?
Many estate plans in Georgia include trusts, and there are various kinds of trusts that have different purposes and benefits. All trusts that are created in Gwinnett County are either revocable or irrevocable trusts. Within those two broad categories a range of other types of trusts exist. If you are considering the establishment of a trust, you may be wondering if you should create a revocable or an irrevocable trust, and what the benefits and limitations are of each kind of trust. Our Gwinnett County estate planning lawyers can provide you with the information you should know, and we are here to speak with you about your specific needs in order to create one or more trusts that will be most beneficial to you.
Differences Between a Revocable and Irrevocable Trust
What are the differences between a revocable and irrevocable trust? First, it is important to understand how trusts work. With a trust, a person called the “grantor” sets up the trust, which can hold different types of assets depending on the type of trust. Then, a “trustee” manages the trust. A “beneficiary” can receive assets from the trust, and some trusts explicitly require particular kinds of beneficiaries.
A revocable trust is one in which the grantor can make changes to the trust or decide to cancel the trust entirely during their lifetime — the terms of the trust remain in the grantor’s control. Differently, an irrevocable trust is no longer in the grantor’s control. Once an irrevocable trust is established, the grantor cannot make any changes to the trust at all and cannot decide to cancel the trust.
Should You Consider a Revocable or Irrevocable Trust?
A revocable trust likely sounds like a better option to you if you are considering creating a trust. However, certain types of trusts must be established as irrevocable trusts in order to serve their purpose. The primary benefit of a revocable trust is that it can allow beneficiaries to receive assets without those assets going through probate — any assets held in a trust do not have to go through the probate process. Yet a revocable trust is not an option for many kinds of trusts.
If you want to create a Special Needs Trust for a disabled adult child, for example, or a Medicaid Asset Protection Trust to protect your assets while becoming eligible for Medicaid coverage for long-term care, the trust must be an irrevocable trust.
To find out more about whether you should create a revocable or irrevocable trust, it is important to discuss your goals with an estate planning lawyer and to learn more about the options that are available.
Contact a Norcross Estate Planning Attorney
Do you have questions about finding and creating the right trust, or other questions about estate planning more broadly? Estate planning is crucial for all adults in Georgia no matter your age, economic status, or health — everyone should have an estate plan. For many people, a trust is an important component of their estate plan. To find out more about the estate planning tools that will be most beneficial to you and to get started on the estate planning process, you should get in touch with an experienced Norcross estate planning lawyer at Bowman Law Firm Today. Contact us for more information about how we can assist you.
Source:
law.justia.com/codes/georgia/title-53/
