Revocable Trust
This type of Trust can be revoked or amended during your life. You remain in control and have authority and possession of the assets in the Trust. You are the trustee maker and can be the trustee manager and beneficiary of the Trust. It can protect you from probate court, any estate death tax your state of residence may have, and creditors and predators of your estate.
However, it will not be able to protect you from the long-term care costs with Medicaid if you end up needing this in the future.
During a consultation, we may also discuss creating a Revocable Bypass Tax Credit Shelter Trust within the revocable trust framework to provide for tax planning.
Irrevocable Trust
In this type of Trust, you will relinquish control, possession, and authority of what assets are placed in the Trust. You will still be the trust maker. However, it is not recommended that you be the Trustee or the Beneficiary.
If you need long-term care, this protects your assets from various entities, especially the government and Medicaid. However, there is a 5-Year look-back period to consider if you are planning to make this type of Trust to protect assets.
Also, as an irrevocable trust, we can help you create a Medicaid Asset Protection Trust or a Veteran Asset Protection Trust if you are a Veteran.
To determine which type of Trust to create, it is always best to join us for a live educational workshop or contact our office.
Watch my YouTube video “The difference between Revocable and Irrevocable Trusts” to learn more.