Summit: Revocable and Irrevocable Trusts

Brian Landzaat |
Categories
Trusts
Estate Planning
Wealth Advisor

What are the key differences between Revocable Trusts and Irrevocable Trusts, and how do they impact my estate planning decisions?

Revocable Trusts and Irrevocable Trusts serve distinct purposes in estate planning, each offering its own set of advantages and considerations. At Vista, we guide our clients through the intricacies of both, ensuring that they choose the trust structure that aligns best with their goals and circumstances.

Consider the following distinctions between Revocable Trusts and Irrevocable Trusts:

  • Control & Flexibility:
    • Revocable Trusts: Grantors retain control and can modify or terminate the trust during their lifetime.
    • Irrevocable Trusts: Once established, they generally cannot be altered or revoked without the consent of the beneficiaries.
  • Tax Implications:
    • Revocable Trusts: Assets remain part of the grantor's taxable estate.
    • Irrevocable Trusts: Assets are removed from the grantor's estate, potentially reducing estate taxes.
  • Asset Protection:
    • Revocable Trusts: Assets remain vulnerable to the grantor's creditors.
    • Irrevocable Trusts: Assets are better protected.

 

Vista Peak Success

At Vista, our commitment is rooted in understanding the unique narratives of our clients. Our purpose is not only to provide solutions that empower, but to guide clients towards the realization of their financial aspirations. We embark on a journey together that maps their life's trajectory, sets aspirational goals, charts a course for achievement, and implements effective strategies. We believe in taking time to measure progress, revisit our strategies periodically, and make necessary adjustments. The ultimate goal? To see our clients bask in the joy of their accomplishments and experience what we term 'Peak Success'. This success is achieved through a holistic approach that encompasses areas like financial guidance, tax efficiency, estate planning, balance sheet coordination, investment management, and purpose-driven initiatives.

 

 

 

The information provided here is not intended as tax or legal advice and should not be taken as such; consult a qualified attorney or certified public accountant for professional guidance.