saving time, court fees, and potentially reducing estate taxes as well. There are many types of trusts; a major distinction between them is whether they are revocable or irrevocable. Revocable trust: Also known as a living trust, a revocable trust can help assets pass outside of probate, yet allows a person to retain control of the assets during ones (the grantor's) lifetime. It is flexible and can be dissolved at any time, should circumstances or intentions change. A revocable trust typically becomes irrevocable upon the death of the grantor. A person can name themselves trustee (or co-trustee) and retain ownership and control over the trust, its terms and assets during ones lifetime, but make provisions for a successor trustee to manage them in the event of incapacity or death. Although a revocable trust may help avoid probate, it is usually still subject to estate taxes. It also means that during ones lifetime, it is treated like any other asset owned. Irrevocable trust: An irrevocable trust typically transfers assets out of the grantor's estate and potentially out of the reach of estate taxes and probate, but cannot be altered by the grantor after it has been executed. Therefore, once the grantor establishes the trust, they will lose control over the assets and cannot change any terms or decide to dissolve the trust. State laws vary significantly in the area of trusts. Consult your attorney for details if the estate and or assets are in a trust.
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