It is likely that one of the main reasons you have been considering creating a Trust is that you heard it gives you, as the grantor, complete control over your assets during your lifetime. We have helped establish countless Trusts for our clients, and that is the biggest selling point by far. Then again, having that perk depends on whether you choose a Revocable Trust or Irrevocable Trust. 

In contrast, an Irrevocable Trust eliminates that measure of control — even though you set it up and are still very much alive. In fact, you cannot modify or terminate an Irrevocable Trust or move assets in and out of the Trust anytime you want. 

You may wonder, “Why on earth would I give up that kind of control? Is ‘control’ not what estate planning is all about?” 

You are 100% correct. 

Having control over your stuff and what you want to happen next for you and your loved ones is the name of the game.

So … Why Should You Have an Irrevocable Trust?

Revocable Trusts and Irrevocable Trusts are both called “trusts” but offer distinct advantages. Depending on your unique estate planning needs and goals, choosing an Irrevocable Trust may be the best vehicle to achieve them. 

While Revocable Trusts give you a ton of control, Irrevocable Trusts trade that control for additional benefits. A few of those include:

• Asset protection — This includes protection from long-term care expenses, creditors, and lawsuits. Assets in a Revocable Trust are not protected. This can be extremely important for individuals with Alzheimer’s disease and the caregivers who care for them.
• Tax advantages — The assets held in your Irrevocable Trust are no longer taxable when you pass away.
• Greater chance to qualify for government programs — Certain government programs, such as Medicaid, require that the recipient adhere to strict income and asset limitations. Maintaining financial assistance during a critical time in your life could be important. 

Irrevocable Trusts are a wonderful estate planning tool, but they are not the right type of Trust for everyone — just as a Revocable Trust is not the right type of Trust for everyone. This is where having a detailed conversation with your estate planning attorney can help. They will be able to explain which Trust type (and other estate planning documents) suits your unique situation.

Call Leigh Hilton PLLC Today!!

Call Leigh Hilton PLLC in Denton, and we will help determine the right course of action for your unique estate planning needs. We have ample experience using a variety of legal instruments and will take into consideration your particular situation. Proper planning of an estate, whether through a Will, Trust, or both, helps ensure your wishes are honored.

Leigh Hilton PLLC wants to be your first call every time for any estate planning need. We look forward to serving you.