If you are reading this, you are researching estate planning options. A revocable trust (Also called a living trust) is a trust in which the terms can be changed at any time. On the other hand, An irrevocable trust is a trust which cannot be modified after it is created without the beneficiaries' consent. One key thing to keep in mind is the world is “Revocable.” The owners of a revocable trust can remove beneficiaries, designate new ones, and modify stipulations on how assets within the trust are managed.
Trusts are separate legal entities set up by people to manage their assets. Trusts are set up during the owner's lifetime to ensure that assets are used or shared in ways the owners deem fit. Once assets are placed inside a trust, a third party, known as a trustee, manages the Trust (and the assets in it). The trustee determines how the assets are invested and to whom they are distributed in the event of an eventuality or if something happens to the owner.
Here are the key takeaways:
Revocable Trusts: Trusts that can be changed or revoked at any time, also known as living trusts.
Irrevocable Trusts: One set up a trustee is assigned, they cannot be changed.
Trustees: The person or entity that is appointed to manage a trust.