Revocable Trust vs. Irrevocable Trust

When planning your estate, one of the most important decisions is whether to establish a revocable or irrevocable trust. Both protect your assets and help manage their distribution — but they work very differently. Your estate planning attorney at The Berman Law Group will ask the right questions and explain which structure is advisable for your situation.

What Is a Revocable Living Trust?

A revocable living trust offers maximum flexibility. As the trustor (grantor), you can make changes at any time — amend the trust, update beneficiaries, or revoke it entirely and draft a new one. The final version of your trust cannot be modified after you die.

Benefits of a Revocable Trust

• You can assign a disability trustee to manage your assets if you become mentally incapacitated
• Helps you avoid probate — an often slow and expensive court process
• Keeps your assets and beneficiaries private (unlike a will, which is a public document)
• Full flexibility to change terms at any point during your lifetime

Limitation of a Revocable Trust

Because you retain ownership of the assets in a revocable trust, those assets are still considered yours. If you are sued, a revocable trust offers no creditor protection.

What Is an Irrevocable Trust?

An irrevocable trust cannot be changed, modified, or revoked once established — unless there are written instructions given to the beneficiaries or trustees that allow modification under specific, limited circumstances.

Benefits of an Irrevocable Trust

• Creditor protection: An irrevocable trust removes your ownership of the assets, placing them beyond the reach of creditors
• Medicaid planning: An irrevocable trust can transfer your assets for Florida Medicaid Planning purposes while helping you maintain an income stream
• Charitable giving: With a charitable lead trust, you can transfer assets while you are alive and receive a tax deduction for the charitable contribution. If you wait until death, your estate can claim the charitable estate tax deduction instead

Key Definitions

Trustor (Grantor): The person who creates the trust and contributes property to it. For living trusts, the trustor is typically also the trustee.
Trustee: The person who manages the trust, usually appointed by the trustor.
Beneficiary: The person or entity who benefits from the trust assets.

The Berman Law Group in Boca Raton will review both options with you — including the tax implications of each — so you can choose the structure that best protects you. Related services include asset protection planning and special needs trusts.

Office Locations

Get Directions to a Berman Law Group office using Google Maps.

Boca Raton Office: 3351 NW Boca Raton Blvd, Boca Raton, FL 33431. Phone: (561) 338-7594 • Fax: (561) 826-5201

Stuart Office: 789 South Federal Highway, Stuart, FL 34994. Phone: (772) 283-9200 • Fax: (772) 283-9229

Orlando Office: 37 North Orange Ave, Orlando, FL 32801. Phone: (407) 926-6610

Gainesville Office: 805 Northwest 13th Street, Gainesville, FL 32601. Phone: (352) 514-3791 • Fax: (561) 826-5201

← Back to Boca Raton Law Firms  •  BocaRaton.com Home