Revocable vs Irrevocable Trusts

Revocable trusts are commonly used to avoid the probate administration process and related court costs and taxes that are dependent on the value of a person’s estate assets at death. These types of trusts may usually be changed, amended, or terminated at any time by the grantor. 

Florida residents often use Revocable Living Trusts, because they help to minimize the statutory requirements that are associated with probating a decedent’s estate. Because Florida has no inheritance tax, these Revocable Living Trusts are a creative tool to skip the hassle and expense of probate associated with opening Formal Probate Administration. Moreover, creating a Revocable Living trust ensures privacy because the document is not made public, unlike a Last Will and Testament. Once a trust is created, it must be funded with assets that you wish to place in trust. A Revocable Trust is a great Will substitute and insulates beneficiaries from creditors, avoids probate, and minimizes taxes and fees.

Irrevocable trusts are typically used for asset protection purposes to preserve a person’s assets from the immense cost of long-term care, particularly skilled nursing care. These types of trusts cannot usually be changed, amended, or terminated by the grantor and are more thoroughly discussed in the Elder Law section of our website.