The most important decisions in life are often so vital because they cannot be unmade. Marriages, births and other commitments are for life. Even when marriages end, children or assets from them can last far longer. Many of those consequences, whether they are considered good or bad, are thing with which people simply have to live.
When it comes to estate planning, however, some important decisions can be unmade. People often shelter assets and value in trusts, which are designed to preserve them for beneficiaries. There are two basic types of trusts like this. One is a revocable trust, and the other is an irrevocable trust.
The names sound very much like the trusts’ nature. An irrevocable trust cannot be changed once it has been created without the beneficiary’s permission. In some cases, such as when the beneficiary is under the age of 18, the permission may not be enough.
A revocable trust allows the creator to make changes or even switch beneficiaries later. In this option, the creator of the trust still owns the assets in the trust outright, so they are open to liability if the creator is sued, declares bankruptcy or is subject to a tax lien or other government action.
An attorney can always help explore the option of creating a trust as well as deciding which basic type is best to address the concerns of the creator. Legal representation can also address the details of getting a trust started in the legal and economic worlds, so it has the best chance of success for the beneficiaries.