Revocable Vs. Irrevocable Trusts: What Is The Difference?
Establishing a trust while you are estate planning can feel overwhelming if you do not have proper guidance. You will have many options to decide from and not only will these affect the legacy you leave behind, but your financial security, as well. All trusts in Florida are either revocable or irrevocable and these two have very distinct features. Below, our Daytona Beach trusts lawyer explains what these are.
What is a Revocable Trust in Florida?
Revocable trusts, also referred to as living trusts, provide you with the control to change your plans as life circumstances change. As the grantor, or the person who established the trust, you can modify the beneficiaries and other terms of the trust, or revoke it in its entirety.
The biggest benefit of a revocable trust is that you can provide your loved ones with a streamlined process for managing the estate while having control over the property within it during your lifetime. Trusts, unlike wills, are not subject to probate and so you can help your family avoid the public nature of court, as well as the high expense of these proceedings. While a revocable trust does not provide the same level of protection as irrevocable trusts, the ability to control the property within it is why many people choose the former.
What is an Irrevocable Trust in Florida?
Irrevocable trusts have tax advantages and asset protection features that revocable trusts do not. In exchange for this protection, you cannot amend or revoke the terms of the trust after it is established and funded without first obtaining the approval of the beneficiaries. The property within an irrevocable trust is not subject to estate taxes and it is also protected from legal judgments and creditors during your lifetime. You will have to relinquish all control over the assets, so it is recommended that you speak with an attorney before establishing a revocable trust.
Additionally, if you ever require government benefits in the future, such as Medicaid, an irrevocable trust can help because the property within it will not count towards the ‘lookback’ period.
Which Type of Trust is Right for You?
Both revocable and irrevocable trusts have many benefits and so, it can be difficult to determine which one is right for you. Neither type of trust is inherently better, and the type you choose will depend on the facts of your situation. It is important to speak to a Daytona Beach trusts lawyer who can review the facts of your case and advise on which type is right for you.
Call Our Trusts Lawyer in Daytona Beach for Help Today
If you are considering including a trust as part of your estate plan, it is important to speak with a Daytona Beach trusts lawyer. At Bundza & Rodriguez, our experienced attorney can advise now which type of trust is right for you and ensure it is executed properly so it is enforceable now and in the future. Call us today at 386-252-5170 or contact us online to request a consultation and to learn more about how we can help.
Source:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html
