Generally speaking, a trust is an estate planning tool that you may use to manage your assets during your lifetime and distribute them after your passing, without going through the probate process. However, there are varying types of trust, or otherwise trust terms that are used interchangably, and there tends to be common misconceptions between them. With that being said, please continue reading to learn the main difference between a living trust and a recovable trust and how one of the experienced Butler County trust attorneys at Heritage Elder Law & Estate Planning, LLC can help you determine which one to establish in your estate plan.
What is the main difference between a living trust and a revocable trust?
Well, there is no distinct difference between a living trust and a revocable trust. Rather, a living trust is a broader term that can refer to both a revocable and irrevocable trust. And so, a living trust describes a type of trust you may create while still alive. In essence, it is like a financial container for your property and assets you wish to pass down to your named beneficiaries. This is while a revocable trust is specifically a type of living trust you may change or cancel at any time while still alive. This is to say that you may add or remove certain property or assets, add or remove certain named beneficiaries, or even dissolve this legal tool completely. As you may assume, the same cannot be said for a trust type known as the irrevocable trust.
Which type of living trust should I establish in my estate plan?
To reiterate, all revocable trusts are living trusts, but noy all living trusts are revocable. With that in mind, you may be unsure whether to establish a revocable or irrevocable trust in your estate plan. Well, the right answer depends on exactly what you wish to accomplish with this estate planning tool. For one, if you want more control over your property and assets during your lifetime, along with more flexibility with altering your intended estate plans, then you should execute a revocable trust. On the other hand, though, if you prefer for your property and assets to have added protection from outside parties (i.e., creditors), along with better tax benefits, then you may be more willing to relinquish some control with an irrevocable trust.
We understand that you may not want to deal with any of this right now, but it must be addressed for your and your loved ones’ sakes. So please allow one of the skilled Butler County trust attorneys from Heritage Elder Law & Estate Planning, LLC to make this legal process less burdensome for you overall. We will be happy to help and give you much-needed relief.
