What is a Trust?
A Trust is a legal document authorizing you, another person, or an institution the power to hold and manage your assets the benefit of you or another person. A Trust is an extremely important estate planning tool that may assist in avoiding Court intervention, court fees, minimizing taxes, and legal fees. A Trust may also assist certain clients qualify for Medicaid and other governmental benefits.
What is the difference between a Revocable Trust vs Irrevocable Trust?
- Revocable Trust – A Revocable Trust allows you to transfer certain assets to a trust while still maintaining complete control over them. A Revocable Trust can be freely amended, modified, or revoked by you during your lifetime. At death, the assets will pass to the named beneficiaries of the trust. A properly drafted Revocable Trust is usually created to help you to avoid Probate.
- Irrevocable Trust – Irrevocable trusts are generally set up to minimize estate taxes, access government benefits, and will provide asset protection. An Irrevocable trusts can be used to help you qualify for Medicaid benefits, which may pay nursing home care, inpatient rehabilitation care, some assisted living programs, and home care if you reside in the community. A properly drafted Irrevocable Trust will also help you to avoid Probate.