REVOCABLE VS. IRREVOCABLE
Trusts can be either revocable or irrevocable. Irrevocable means not able to be revoked, changed, or undone. An irrevocable document is simply a document which may not be revoked. Creating an irrevocable trust can lock out any changes and protect the document and its purpose from unwanted alterations. It can also lead to unwanted consequences. Careful consideration and care should be given prior to making a trust irrevocable.
The majority of trusts are revocable documents, meaning they may be changed either at your discretion or at some defined time or event. Additionally, the amount of discretion you keep as the grantor of the trust plays a part in the taxability of the trust. There are often trade-offs to be made, such as revocability versus taxable consequences. You need a skilled and experienced advisor to help you make the decision of revocability versus irrevocability of any trust document.
For further information regarding various types of trusts visit each of the topics below.
Types of Trusts:
- Charitable Trusts
- Irrevocable Life Insurance Trusts
- Marital Trusts and Credit Shelter Trusts
- QTIP Trusts
- Pour Over Trusts
- Special Needs Trusts
- Testamentary and Intervivos Trusts
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