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Revocable and Irrevocable Trusts; Pierce Legal logo appears in lower left corner

Revocable v. Irrevocable Trust: Which is Right for You?

When it comes to estate planning, trusts are a crucial tool. They offer flexibility, control, and potential tax advantages. However, not all trusts are created equal. The two primary types of trusts are revocable and irrevocable. While they may appear similar at first glance, they have distinct differences that can significantly impact your estate planning.

What is a Revocable Trust?

A revocable trust, also known as a living trust, is a type of trust that can be altered, modified, or revoked at any time by the trustor (the person who creates the trust). The trustor usually serves as the trustee during their lifetime, maintaining control over the trust assets. Upon their death, a successor trustee—chosen by the trustor—takes over.

The Benefits of a Revocable Trust

A revocable trust can offer several benefits for individuals and families when it comes to estate planning and asset management. Here are some of the key advantages of having a revocable trust:

1. Probate Avoidance

One of the primary benefits of a revocable trust is that it allows your assets to bypass the probate process after your death. Probate is a court-supervised process of distributing assets, which can be time-consuming, costly, and public. Assets properly held in a revocable trust can pass directly to your beneficiaries, avoiding probate, and providing a quicker and more private distribution of assets.

2. Privacy

Probate is a public process, which means that the details of your estate, including your assets and beneficiaries, become a matter of public record. In contrast, revocable trusts are private documents. The distribution of assets through a trust remains confidential, typically accessible only to beneficiaries of your trust, keeping your financial affairs out of the public eye.

3. Flexibility & Control

As the grantor of a revocable trust, you maintain complete control over the trust assets during your lifetime. You can make changes to the trust, add or remove assets, and modify beneficiary designations as your circumstances change. This flexibility can be particularly useful in adapting your estate plan to life events like marriages, births, or changes in financial status.

4. Incapacity Planning

A revocable trust can provide for the management of your assets in case you become incapacitated or unable to manage your affairs. You can designate a successor trustee to step in and manage the trust assets on your behalf without the need for a court-appointed conservatorship, which can be a lengthy and costly process.

What is an Irrevocable Trust?

An irrevocable trust, once established, generally cannot be altered, modified, or revoked by the trustor. Only under certain circumstances (like with a court order, action by a Trust Protector, or the consent of the beneficiaries) can changes be made.

The Benefits of an Irrevocable Trust

In addition to most of the advantages offered through revocable trusts, irrevocable trusts offer a range of benefits for individuals and families in various estate planning and asset protection scenarios. While they come with certain limitations, such as the inability to make changes once established, these trusts can be valuable tools for achieving specific financial and estate planning goals. Here are some of the key benefits of an irrevocable trust:

1. Asset Protection

Irrevocable trusts are excellent vehicles for protecting assets from creditors, lawsuits, and potential claims. Once assets are transferred into the trust, they are typically no longer considered part of your personal estate, making them more challenging for creditors to access.

2. Medicaid Planning

For individuals concerned about qualifying for Medicaid benefits to cover long-term care expenses, irrevocable trusts can be used to divest assets over time. When used in pre-planning scenarios that account for the five-year lookback period, irrevocable trusts provide a vehicle for helping you qualify for benefits while protecting your legacy. This can help meet Medicaid’s asset limits and protect assets for future generations.

3. Privacy

The assets placed in an irrevocable trust are considered separate from your personal assets; in fact, they are held in your Trustee’s rather than your own name. Consequently, they are less likely to be subject to scrutiny in the event of legal disputes, judgments, or claims against you. This added layer of privacy can be valuable for asset protection. Furthermore, for individuals with complex estate planning arrangements involving various trusts or charitable giving strategies, the use of irrevocable trusts can maintain privacy and discretion in how their wealth is distributed and managed.

Key Differences between Revocable & Irrevocable Trusts

While offering similar estate planning benefits, there are key differences between revocable and irrevocable trusts. These include:

Differences in Control & Flexibility

Revocable Trusts

The grantor (the person creating the trust) retains full control and can make changes to the trust, add or remove assets, and modify beneficiary designations at any time during their lifetime.

Irrevocable Trusts

The grantor relinquishes control over the trust assets once they are transferred into the trust. Changes to the trust are typically not allowed without the consent of a trust protector or the beneficiaries.

Asset Protection

Revocable Trusts

Revocable trusts do not offer significant asset protection because the grantor maintains control and ownership of the trust assets. Creditors can potentially access these assets.

Irrevocable Trusts

Irrevocable trusts provide a higher level of asset protection, as the assets are typically no longer considered the property of the grantor. They are protected from creditors, lawsuits, and judgments in most cases.

Medicaid Planning

Revocable Trusts

Revocable trusts do not help with Medicaid planning because they are still considered part of the grantor’s assets for Medicaid eligibility purposes.

Irrevocable Trusts

Irrevocable trusts can be used in Medicaid planning to divest assets over time, helping individuals qualify for Medicaid benefits for long-term care.


Attorney Danielle Pierce

Revocable trusts provide flexibility and control during the grantor’s lifetime and help avoid probate. However, they do not offer the same level of asset protection or estate tax benefits as irrevocable trusts. Irrevocable trusts, while less flexible, provide stronger asset protection and are valuable for specific estate planning and asset protection goals. The choice between the two depends on your individual circumstances and objectives. At Pierce Legal, we can assess your specific needs and provide tailored advice to help you decide which trust structure is right for you. We get to know each of our clients, gaining a meaningful understanding and relationship with you that allows us to create a thorough estate planning strategy that will satisfy all of your planning goals and needs. Contact us today to schedule a consultation at (330) 588-6115.


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