TRANSCRIPT:
Did you know trusts date back to the Crusades? Now, at the time, knights handed over their land to trusted stewards while they went on campaign for years or possibly never to return. Fast forward to today, and trusts have evolved into a powerful estate planning tool that protects and manages your assets. And you don’t even need a sword or a shield. I’m Ken Hargreaves, a certified financial planner and president of Wealthchain Advisors. The question is, should you choose a revocable or an irrevocable trust? Well, that’s a decision you should make with your estate attorney. But today, I’m going to give you an overview of the two types.
A revocable trust gives you flexibility and control. You can change or revoke it at any time, making it ideal for estate planning with flexibility. If you want to avoid probate, maintain privacy, and ensure smooth management of assets while retaining full control during your lifetime, a revocable trust might be the right choice for you. An irrevocable trust can’t be changed once established, but it provides significant benefits like tax savings and protection from creditors.
But once you place your assets into the irrevocable trust, they cannot be for your benefit. Now, if you’re concerned about estate taxes, you want to shield assets from lawsuits or creditors, or plan to gift assets during your lifetime to reduce your taxable estate, an irrevocable trust might be better suited. I hope that helps. As always, consult with your team of advisors and a state attorney to customize your plan.
