Understanding the difference between revocable and irrevocable trusts is
crucial if you are planning on requesting one and end up receiving the
wrong one. A mistake like that can have both legal and tax consequences,
so take some time to educate yourself on the differences so you can better
plan your future.
What is a Revocable Living Trust?
A revocable living trust, sometimes referred to as a living trust or inter
vivos trust, is a type of trust one can change at any time through a trust
amendment and restatement. This means that if you decide there is something
you do not like about your trust, or you want to scrap the entire thing,
the process of making changes is easy and allows for a great amount of
The downside to this type of trust is that assets funded into it will be
considered your own personal assets for creditor and tax purposes. Therefore,
you will not have any creditor protection if you are sued and all of the
trust assets held in the name of the trust at the time of your death will
be subject to state estate, federal estate, and state inheritance taxes.
What is an Irrevocable Trust?
Unlike revocable trusts, an irrevocable trust cannot be changed after the
agreement has been signed. Revocable trusts can also become irrevocable
trusts after the Trustmaker dies or after a certain timeframe. This type
of trust is handy for estate tax reduction, asset protection, and charitable
Houston Will & Trust Attorneys
There are a vast amount of steps one can take toward a well-crafted and
intelligent estate plan and having a trust is among one of the most important.
At the Law Office of Kathryn Marteeny, a skilled Houston estate planning
attorney will help you create a trust that fits your needs and preferences.
Contact our office today at (713) 936-2300 to schedule a consultation with
a knowledgeable member of our team.