Revocable Trust vs. Irrevocable Trust in Missouri

Having a Trust as part of your estate plan can help you avoid probate and reach better and smoother outcomes when compared with simply having a Will. However, it is important to be aware of various types of Trusts, including: revocable living trust; irrevocable trust; special needs trust; testamentary trust; life insurance trust; asset protection trust. Moreover, it is important to understand the various types of available tools (i.e. the various types of available Trusts) and when they might be appropriate. For example, clients often ask what the difference is between a “revocable” Trust and an “irrevocable” Trust.  As the names suggest, the core difference is whether it can be changed or “revoked.”  A Revocable Trust is generally flexible during your lifetime and often the lifetime of your spouse.  It can be revoked, amended, updated, changed and revised over time.  Conversely, an Irrevocable Trust generally cannot be changed or revoked - but is intended to be permanent in its initial structure. 

Now of course, underneath these umbrella terms are found various types of Revocable Trusts and various types of Irrevocable Trusts. Any particular Trust is put in place to serve certain purposes and protect certain interests of the client. For a majority of situations, a Revocable Trust is most appropriate.  For example, it is very common for a couple or individual to want to protect their assets from probate and ensure that their children (or other chosen beneficiaries) receive their assets in an efficient and purpose manner - all while the creators of the trust retain the ability to make changes over time. In such a situation, a revocable living trust is often best - although the particulars of any given situation can direct other approaches.  

An Irrevocable Trust is generally most appropriate for more unique situations such as planning for estate tax liability, seeking asset protection or other less common scenarios (but again, every situation varies and the appropriate tools vary as well)

Amidst the variety of tools and Trusts available in estate planning, my job is to make things easy.