There are various types of options available via the estate planning process to help individuals take steps to help protect their interests and preserve wealth. Those who wish to explore the benefits of trusts may find that there are numerous types of trusts to consider, two of which involve revocable and irrevocable trusts. Evaluating some of the differences between revocable and irrevocable trusts could help individuals in Georgia prepare to choose the path that best aligns with their goals and needs.
One difference between these two types of trusts may involve the fact that one may retain the right to modify the terms of a revocable trust after it is created. Assets placed within an irrevocable trust are no longer under the control of the grantor and the terms of the trust cannot be modified. The transfer of asset ownership can be beneficial at times, as this may help protect assets from creditors. Revocable trusts might not protect assets against creditor claims.
It may also be helpful to note that while irrevocable trusts may come with certain types of tax-related benefits, revocable trusts might not provide such benefits. However, both trust options may help shield assets from being subject to the probate process. Those applying for government benefit programs may also find that assets within an irrevocable trust will not affect their asset limits.
Evaluating the options
This may only include a brief list of differences between revocable and irrevocable trusts. Those who wish to better understand the potential advantages and disadvantages of each path could choose to speak with an experienced attorney for guidance in evaluating their available options. Such a decision could help a person in Georgia better prepare to make informed decisions while creating a strategy that best meets his or her future goals and needs.