www.charlesjeromeware.com. "Here to make a difference."
Charles Jerome Ware, Attorneys & Counselors, is a Maryland-based national law firm.
For an initial courtesy consultation, contact us at charlesjeromeware@msn.com, (410)
720-6129 or (410) 730-5016. The information presented herein is not intended to be legal advice.
In today's estate environment trusts are one of the most preferred methods of passing on and preserving wealth. Most Americans need to know the difference between the two most used
trusts : revocable and irrevocable .
.On a very basic level, the primary difference between these two trust instruments is " control."
A revocable trust is more commonly referred to as a " living trust." It is a legal instrument (document) created during a person's life and is used to hold property such as real property
(realty), business assets, and investments for the benefit of that person and his or her family. What makes this trust "revocable" is that the person who creates the trust (the "grantor") can
literally dissolve the trust at any point during the his or her lifetime. This living revocable trust ensures not only that the person's assets are protected after death but it also protects those assets during life.
The irrevocable trust cannot be altered or changed, nor dissolved, after its creation without the permission of the trustee ( the person responsible for the trust's assets) and all of the beneficiaries ( the individuals who receive support and money from the trust). Many of us estate planners may recommend that a person create an irrevocable trust (particularly upon his or her death) in order to ensure that the deceased's loved ones are taken care of. The difficulty encountered in changing the trust or dissolving it can ensure that misguided beneficiaries do not fight over or "burn through" the limited trust funds, Further, the trust funds will be protected from the beneficiaries' creditors.
In the event that a person creates a living revocable trust and dies, that trust then reverts to an irrevocable trust.
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