Revocable and Irrevocable Trusts in Phoenix
What is the difference between a will and a trust?
Not many people understand the difference between a will and a trust. With a will, property transfer takes place upon your death. Creating a trust, on the other hand, enables you to transfer your properties to that trust while you are still alive. This avoids the sometimes complex and costly probate process required for wills.
You can establish two different types of trusts: revocable and irrevocable. These different trusts share certain characteristics. They are legal entities created while you are still alive in order to pass on assets such as money or property. However, it would be a mistake to assume they are identical.
Revocable and irrevocable trusts in Phoenix can be complex, but the firm of John R. Fitzpatrick has the skill and experience to help you successfully establish the kind of trust you need. Some important differences between Phoenix revocable trusts and irrevocable trusts are outlined below.
Phoenix Revocable trusts
A revocable trust is also sometimes called a living trust. The living or revocable part means you can change the terms of the trust at any time. You have complete control over the trust, and can even dissolve it if you wish. Whatever assets are held in this trust do not have to go through probate when you pass on. This can be a great favor to your beneficiaries, who do not have to struggle through the probate process if you die without a will. On the negative side, however, whatever you put in the trust can still be accessed by your creditors, and is subject to income and estate taxes.
Unlike revocable trusts in Phoenix, irrevocable trusts cannot be changed or dissolved once you complete them. That means whatever assets, beneficiaries, or terms placed into the trust cannot be taken out or altered. However, these types of trusts are still a good option if you want to avoid a certain amount of estate taxes. In addition, the items in the trust are not subject to probate, the same way they would be if you died without a will. Finally, an irrevocable trust may also shield the assets within it from your creditors.
Phoenix Wills and Trust Lawyer
Nothing is a greater gift to those you care about than securing their future. Whether they are your family, friends, or certain charities you have in mind, you want only the best for them once you are gone. The law firm of John R. Fitzpatrick can help make sure your loved ones are looked after the same way you would. Contact us today at 602-277-2010 and start making the plans of a lifetime.