Philadelphia Revocable vs. Irrevocable Trusts – What You Need to Know
Posted on Fri Sep 11, 2015, on Trusts
From our “Ask a Question” Mailbag: Philadelphia Revocable vs. Irrevocable Trusts
Most Recently Updated July 21, 2018.
“I am worried about having someone sue me in the future and would like to shelter my assets from creditors. I have read about Irrevocable Trusts and Revocable Trusts, do they both help avoid creditors and lawsuits?”
Philadelphia Revocable vs. Irrevocable Trusts
A Revocable Living Trust is a wonderful tool with many uses, but it does nothing to help you avoid your creditors. Because a Revocable Living Trust is “Revocable.” That means you can take the assets back into your name at any time. Because you can take the assets back, any future creditor you have or any future lawsuit judgement against you can be enforced against the trust.
If you create an Irrevocable Trust and fund it before the creditor has a claim or the cause of action arises that creates the lawsuit, it can be designed so that that creditor has no way to access the funds. This means you must give the asset to the trust and have no right to reclaim the asset or control it. If you are willing to give up these rights, though, the Irrevocable Trust might be just what you are looking for.
To give you a better answer I would need to know more about the assets you wish to place in the trust and your overall estate planning goals. Feel free to contact me to set up a free consultation.
More Planning Questions?
Revocable and Irrevocable Trusts are only a piece of the Estate Planning process. By all means, if you want to learn more, please read my more detailed article, Estate Planning Everything You Need to Know.
In Conclusion: Philadelphia Revocable vs. Irrevocable Trusts
I hope that this article was helpful in explaining revocable and irrevocable trusts. Further, I included links to even more detailed information on my website so you can learn more. Therefore, please contact me and let me know how I did. Certainly, your comments and questions are welcome!
Let our Estate Planning lawyers help walk you through what can be a confusing process. To begin with, call to speak to one of our experienced estate planning lawyers. By all means, our lawyers are ready to answer your questions. In fact, feel free to contact our office for a free consultation. Ultimately our goal is to make the process as painless as possible!
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Tags:Estate Planning, Estate Planning Attorney, Estate Planning Lawyer, Irrevocable Trust, Pennsylvania, Philadelphia, Revocable Trust