Irrevocable vs. Revocable Trusts
Preparing for the probate and estate litigation process can feel like an overwhelming task. Commonly people come to us wondering what the difference is between an irrevocable and a revocable trust. We’ve outlined a few things to consider around this topic as you’re preparing for this process and seeking out an attorney.
While the laws surrounding the probate and estate process vary state by state, the differences between an irrevocable and a revocable trust are pretty common, even in the state of Florida. One of the first differences you’ll notice is that irrevocable trusts are permanent and cannot be changed, while revocable trusts can be modified at any time by a competent grantor during his or her lifetime, and even canceled if the grantor feels like it.
There are times when having one might be better than the other. For example, one of those situations is to protect against creditors. If the grantor passes away with any kind of debt, it can be taken out from the revocable trust, rather than the trust being passed on to the family, since revocable trusts offer less creditor protection. Additionally, assets held in a revocable trust are subject to both state and federal estate taxes. These are situations in which an irrevocable trust might be better, but of course it’s always best to coordinate with your estate planner and attorney as you make plans for you and your family.
These are very broad brushstrokes on the difference between an irrevocable and a revocable trust. At Greene & Greene, it is our mission to provide superior legal representation, service and value to our clients. Our attorneys are all experienced litigators who handle your case personally. If you are interested in engaging our firm, consultations are scheduled as needed and we are happy to accommodate your calendars.