What is the difference between a revocable living trust and an irrevocable living trust?
A revocable living trust is one that can be changed or canceled at any time. You can modify it by amending the trust if you have reservations about a specific provision in the trust terms, such as if you change your mind about who should be the beneficiary. You can even revoke the entire trust if you decide it no longer serves your purposes.
An irrevocable living trust cannot be changed by the grantor after the agreement is signed, the trust is formed, and it is funded. You cannot reclaim the property you placed in the irrevocable trust. You cannot be a trustee and manage the trust’s assets. The trust is established and left forever, although there are some rare exceptions.
Ownership of Assets
If you create a revocable living trust, all assets transferred to the trust are still considered your personal property because you still have complete control over them. This is beneficial if you want to maintain control over the assets, but the downside is that creditors can still access them. A revocable trust does not provide protection if you are sued—your assets are at risk just as if you still owned them in your own name. The law assumes that if you can reverse it,
Source: https://www.thebalancemoney.com/revocable-vs-irrevocable-trusts-3505386
Leave a Reply