A living trust is a useful estate planning vehicle that specifies the distribution of assets. It allows a third party to hold or direct the assets on your behalf and makes it easier to pass them along. There are two types of trusts: revocable and irrevocable. To determine which is right for you, consider the following factors.

Revocable Trust

A revocable trust allows the assets to remain in the estate until the passing of the grantor. This means you retain full control and claim the rights to any income made during the life of the trust. If you wish to make modifications or terminations, then you may do so at your convenience.

This living trust works well for those who want to prepare for the possibility of becoming mentally incapacitated, whether because of family history or a medical reason. Making it clear how you want to handle your estate will give you peace of mind. Plus, you can continue managing your assets for as long as you’re able.

Irrevocable Trust

In an irrevocable trust, once the transfer is complete, the grantor relinquishes all control over the assets. It doesn’t allow for modifications without the permission of the beneficiary. If needed, you can reach out to the beneficiary and request a change, but it’s up to them to comply.

This living trust protects its assets. Since you no longer have ownership, you can’t lose the value to a creditor or a lawsuit. Plus, if you need to move into a nursing home, the money doesn’t have to go toward paying for your room and board. It’s completely separate from your estate.

If you’re interested in setting up a living trust, reach out to the Law Office of George N. Nam in Aiea, HI. This attorney and his team have provided reliable estate planning for more than 28 years. Call (808) 487-9455 to schedule a consultation, or visit the website for additional information on their services.