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What’s the difference between irrevocable and revocable trusts?

What’s the difference between irrevocable and revocable trusts?

Planning for your estate administration is important to make sure that your assets are taken care of. By creating a will, you can include directions about how to administer your estate. This can help others understand what you would have wanted done. At this time, you can also create a trusts. Trusts can have benefits that come along with them. Some of this can include tax benefits. Since there are many different types of trusts, there may be different benefits that come along with each one. A trust is basically a contract between a trustee and an estate. This authorizes the trustee to hold assets on behalf of a beneficiary.

There are two main types of trusts: irrevocable and revocable trusts. An irrevocable trust cannot be changed without the explicit consent of a beneficiary. A revocable trust can have changes made at-will by the testator. With these trusts, it can pass assets outside of probate. This may allow the assets to switch ownership quicker than if it were to go through the probate process.

What are some examples of trusts?

Since trusts are established for various reasons, there are many different kinds to suit all reasons. These trusts can have benefits to them that may make them more appealing. Before acquiring a trust, it is best to consult with a professional to understand what benefits may come along with that specific trust. Some trusts include an inter vivos trust, an asset protection trust, a supplemental needs trust, a charitable remainder trust, a special needs trust, a charitable leads trust, a generation-skipping trust, a life insurance trust, a testamentary trust and a qualified personal residence trust. With these trusts, the individual that receives them can benefit from them.

A special needs trust can be set up to plan for a special needs individual. As their caretaker, you should plan for their care if something were to happen to you. This can provide them with the guidance they need. It can provide money for care that they need on a daily basis. A pet trust is also an option. This can plan for your pet’s care after you die. It can also transfer ownership to another individual. In the trust, you can describe your cat’s individual needs and how you would care for them.

The Lauterbach Law Firm is proud to serve clients throughout Rockland County who are faced with legal matters related to estate planning, real estate, foreclosure defense, landlord-tenant law, business law, and criminal defense. If you require the services of an experienced team of attorneys, contact The Lauterbach Law Firm today to schedule a consultation.

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