Our experts are here to answer all of your questions and concerns on our FAQ page. Trusts can be tricky, so IRS EIN wants to break down the difference between revocable trusts and irrevocable trusts for you.
Revocable Living Trusts
Also known as a revocable living trust or inter vivos trust, a revocable trust can be changed any time you wish. If you have second thoughts about the information given, you may change the terms through a trust amendment. If you want to change the entire revocable trust, then you must revoke the agreement.
Though it is extremely handy and flexible, one of the issues of having a revocable living trust is that the assets and properties included in your living trust will still be considered your own personal items for estate tax purposes or credit companies.
An irrevocable trust cannot be changed after you have signed the agreement. Its contents become non-reversible after the trust maker dies or cannot oversee their assets or finances any longer due to health issues. They are also utilized to remove the value of your assets or property from your estate, so that these items cannot be taxed after you die. This gives your loved ones an advantage by letting them inherit all of your assets or properties without the problem of taxes.
If you wish to learn more about revocable and irrevocable trusts, contact IRS EIN today.