A living trust lets you control your assets, including your money and property, while you are still alive and have it distributed to people and organizations you choose at your demise. It helps you avoid probate, which is a court process that would otherwise have to step in and administer the distribution of your assets.
Choosing between irrevocable and revocable trust depends on which you want to prioritize. While a revocable trust enables you to be flexible and control the estate since the terms can be modified, amended, or revoked, an irrevocable trust is the exact opposite. It cannot be changed or terminated without the permission of the grantor or beneficiaries and in specific unique situations.
Although it cannot be modified, an irrevocable trust can be beneficial in certain cases. For instance, larger estates may benefit from it because it can shelter them from estate and gift tax. In addition, it can be a beneficiary of a life insurance policy.
A revocable trust is a simple way to protect your assets and beneficiaries while avoiding probate and assuring privacy. This means the court does not get involved in distributing your assets. You also have complete control of updating your trust when you have significant life changes. Additionally, it lets you maintain control over your assets.