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What type of trust should you choose?

On Behalf of | Sep 11, 2018 | Trust And Probate Administration |

As part of your estate planning efforts in Illinois, you may decide to create a trust. There are two types of trusts that you can consider, which are irrevocable and revocable. They operate differently. You have different levels of control with each also. The name of them kind of gives you some insight into how they work, but U.S. News and World Reports explains a revocable trust can be rewritten or ended by you where as an irrevocable trust cannot.

The main thing to know about these trusts is that you have more control over a revocable trust. You can make changes as needed or just do away with the trust if you want to. On the other hand, with an irrevocable trust, you create it and then it goes under the control of the trustee. You cannot make changes in the future. It is set in stone, so to speak. One good thing about an irrevocable trust is that it can protect your assets and do offer some tax advantages.

It really boils down to your plans for the trust and how much you value having the ability to control what happens with it in the future. If you are fine with setting your plans in place and letting go, then an irrevocable trust would work. However, if you second guess your decisions a lot or fear you may need to change things in the future, then you might be better off with a revocable trust. This information is for education and is not legal advice.