When Georgia residents engage in estate planning, one of the primary concerns is making sure that their decisions provide the most benefit to them and their family members. Many of them will use trusts in order to achieve that goal. Before trust preparation can begin in earnest, individuals will need to determine whether their interests are best served by a revocable or an irrevocable trust.
Revocable trusts allow the person creating the trust to maintain a substantial amount of control over the assets. They can serve as trustee, make changes to the trust, and put assets into and take them out of it when needed. During life, this may seem like the best solution even though it means the assets could remain part of the state for tax and government aid purposes.
On the other hand, an irrevocable trust is as the name implies. The individual can no longer make changes, serve as trustee or alter the trust in any way unless under specific circumstances. However, the assets in an irrevocable trust are no longer considered part of the individual’s estate for tax or government aid purposes. Of course, all trusts become irrevocable once the person creating them dies.
Deciding whether to make a trust revocable or irrevocable is not an easy task. This decision should not be made lightly, and all pros and cons require careful consideration during the trust preparation process. For this reason, working with a Georgia attorney experienced in estate planning and trusts would provide much needed insight into which avenue would best serve an individual’s goals and wishes when it comes to the disposition of his or her estate.