More and more people in East Brunswick, NJ, are realizing the importance of proper estate planning. As such, knowledge about the many options to choose from when planning an estate is growing. Despite the ongoing spread of knowledge, many estate planning terms and features still confuse residents.
For example, what is the difference between a revocable and an irrevocable trust? Which one do most people choose and why? This post will address irrevocable trusts and will talk about the advantages and disadvantages that accompany this type of trust.
An irrevocable trust simply means that once it is created and put into place, it cannot be changed. A revocable trust, on the other hand, can be changed with assistance from an estate planning attorney whenever you wish.
Possible advantages of irrevocable trusts
- You may reduce the taxes associated with your estate
- You may leave your home to your kids without incurring taxes
- You can help your beneficiaries avoid misusing their inheritance
Possible disadvantages of irrevocable trusts
- The unchangeable nature of the trust does not allow you to plan for unforeseen changes to your life circumstances
- You will lose control of your assets once they are placed into the trust
- If changes to the trust do become necessary, you must seek approval from your beneficiaries
Like other elements of successful estate planning, the decision to include a revocable or irrevocable trust is unique to your situation. However, guidance is readily available for those who are uncertain of their needs. To achieve a plan that works for you and your heirs, speaking with a legal professional experienced in the estate planning field is a great idea.