Key Takeaways | Revocable vs. Irrevocable Trusts
Revocable trusts are flexible and allow the grantor to be the trustee and beneficiary while alive.
Irrevocable trusts provide asset protection from creditors and nursing homes, but require the grantor to give up control of the assets.
Revocable trusts avoid probate and can be amended or modified at any time.
Irrevocable trusts are less flexible and harder to change.
Episode Notes:
In this episode, attorney Bill Miller discusses the differences between revocable and irrevocable trusts. Revocable trusts are flexible and allow the grantor to be the trustee and beneficiary while alive. These types of trusts avoid probate and can be amended or modified at any time. On the other hand, irrevocable trusts provide asset protection from creditors and nursing homes, but require the grantor to give up control of the assets. These trusts are less flexible and harder to change.
Both revocable and irrevocable trusts have their uses and can be tailored to individual needs.
Notable Moments:
00:00 Introduction and Disclaimer
01:00 Overview of Trusts
02:55 Revocable Trusts
06:30 Funding and Successor Trustees
07:59 Revocable Trusts vs. Wills
09:29 Naming the Trust as a Beneficiary
10:39 Standby Special Needs Provisions
11:58 Instructions and Limitations in a Revocable Trust
12:28 Flexibility and Real Estate in Multiple States
14:35 Continuity of Asset Management
15:36 Avoiding Family Fights and Drama
16:06 Blended Families and Asset Disposition
17:35 Flexibility and Limitations of Revocable Trusts
19:19 Drawbacks of Revocable Trusts
20:14 Introduction to Irrevocable Trusts
21:26 Asset Protection from Creditors and Nursing Homes
23:19 Giving Up Control in Irrevocable Trusts
25:24 Differences Between Revocable and Irrevocable Trusts
27:06 Conclusion