Revocable vs. Irrevocable Trusts
Not all trusts are created equal. In fact, there are two very different kinds — and the one you choose could mean the difference between flexibility today and protection tomorrow.
When people hear “trust,” they often think of something only the ultra-wealthy need. But the truth is, trusts can be powerful tools for everyday families — and they come in two main flavors: revocable and irrevocable.
Revocable Trust (aka Living Trust)
Flexibility: You stay in control. You can amend, revoke, or dissolve it at any time during your life.
Uses: Avoid probate, keep affairs private, ensure smooth transfer of assets.
Taxes: No immediate tax advantages, since you still own the assets for tax purposes.
Best For: Families who want simplicity, privacy, and control — but aren’t looking for advanced tax or asset protection strategies.
Irrevocable Trust
Rigidity (and Power): Once created, you generally can’t change or revoke it. Assets are moved out of your estate.
Uses: Protect assets from creditors, reduce estate taxes, shield wealth for Medicaid planning.
Taxes: Potentially significant savings — assets are no longer counted toward your taxable estate.
Best For: High-net-worth individuals, families doing long-term Medicaid planning, or anyone focused on preserving wealth across generations.
How to Think About Them
Revocable Trust = Control Today.
Irrevocable Trust = Protection Tomorrow.
Some families use both, depending on their goals. It’s not about being “rich” — it’s about being strategic.
Every trust comes with trade-offs between flexibility, control, protection, and taxes. The key is knowing what matters most to you and your family.
Revocable or irrevocable, every trust is just a tool. The key is matching the right tool to your goals — whether that’s privacy, protection, or passing on wealth tax-efficiently.