Irrevocable vs. Revocable Trusts
Revocable Trusts
- Can be changed or revoked anytime
- You maintain control as trustee
- Assets still part of your taxable estate
- No creditor protection during life
- Primary benefit: probate avoidance
Irrevocable Trusts
- Cannot be changed once created
- You give up control and ownership
- Assets removed from taxable estate
- Provides creditor and lawsuit protection
- May qualify for Medicaid
- More complex and costly to establish
Which to Choose?
Most people benefit from revocable trusts for basic probate avoidance and flexibility. Irrevocable trusts serve specific purposes: estate tax reduction (large estates), asset protection (high-risk professions), or Medicaid planning.