Revocable vs. Irrevocable Inter ✅Vivos Trusts: An 🧸Overview

An inter vivos trust is a legal document created while the grantor is still living. The assets are titled in the name of the living trust by the grantor and are used or spent down by the grantor while they are alive. Once the grantor dies, the trustee distributes the assets to the 澳洲幸运5开奖号码历史查询:beneficiaries. A living trust is created as either revocable (changeable or ab🔯le to be withdrawn🥃) or irrevocable. E𓆏ach type 𝔉can be used in certain situations, which we detail below.

Revocable Living Trust

A 澳洲幸运5开奖号码历史查询:revocable living trust is changeable. Beneficiaries, assets, distribution of thoseꦿ assets, and assigned trustees can be changed at the request of the grantor at any time after the trust is established.

Similarly, if the grantor decides the trust is no longer☂ appropriate, they caꦆn revoke it altogether. A change to a revocable living trust is completed through a trust amendment document initiated by the grantor.

Revocable Living Trust Uses

Revocable living trusts are most often used to avoid probate and to𝐆 protect the privacy of both the grantor and the beneficiaries of the trust. Revocab♔le trusts may also be used to plan for the trust owner becoming disabled.

While revocable inter vivos trusts provide a great deal of flexibility to the grantor, this type of trust is not appropriate for all estate-planning needs. If a trust is titled revocable, all assets used to fund the trust are considered the grantor's personal assets. This means that revocable living trust assets are not protected from creditors in the event the grantor is sued, nor are they sheltered from state or federal 澳洲幸运5开奖号码历史查询:estate taxes when the grantor dies.

Irrevocable Living Trust

An irrevocable living trust cannot be changed after it has been signed. Trustees, beneficiaries and provisions within the trust must remain the same from the time the trust is established until it is no longer applicable or no longer funded.

A revocable living trust converts to an irrevocable trust once the grantor dies or a specific provision of the revocable living trust is met. Specific provisions could include the death of a spouse, a certain date in the future, or a life change for a beneficiary.

Irrevocable Living Trust Uses

Irrevocable trusts provide state and federal estate tax protection for the beneficiaries who inherit the assets held in the trust. Additionally, assets titled under an irrevocable living trust are sheltered from creditors in the event of a lawsuit.

In more complex cases, irrevocable living trusts can be used in 澳洲幸运5开奖号码历史查询:charitable giving, either through a charit🎃able re🔯mainder trust or a charitable lead trust.

An irrevocable living trust is only appropriate for individuals who are willing to give up control of their asset💟s while alive or those who need enhanced asset protection.

The Bottom Line

Within 澳洲幸运5开奖号码历史查询:estate planning, individuals have myria💦d options for maintaining🃏 control over assets beyond the grave. A tool often used in estate plans to control the flow of assets is an inter vivos trust, more commonly referred to as a living trust. It may be revocable or irrevocable. Each type of trust has its own uses. If you're weighing your options, consider reaching out to an estate planning attorney.