Living trusts can be excellent financial protection instruments for people who have specific wealth that they want to protect or ensure gets passed according to their wishes when they die. Trusts can be great diversion tools that can insulate against contested wills and tax collection. But, it is important to understand that revocable and irrevocable trusts have different applications toward the goal of the grantor who is establishing the financial estate plan, and having an experienced Portland estate planning attorney means everything can be completed and will perform as intended when needed.

Revocable Trusts

Revocable trusts are very commonly used by many individuals who want to avoid certain liabilities in the event of their death, or if they may become incapacitated at any point in time. A revocable trust is usually kept in the name of the grantor, but a secondary trustee can be designated as well to operate as a power of attorney over the trust assets. The document can also name specific beneficiaries who can take control of the assets quicker without having the trust exposed to attachment from creditors. As the name indicates, a revocable trust is not permanent and can be changed at any time by the primary asset holder before the time of death.

Irrevocable Trusts

This type of financial document means exactly what it says. Once the trust is established the terms of the arrangement cannot be changed, and all terms will be followed when property is distributed as directed by the trust language and executed by the designated trustee after the time of death for the grantor. This legal financial stipulation governs how all addressed property is set to transfer per the wishes of the grantor. In addition, the property is legally considered as that of the beneficiary, which allows the trust to avoid some taxes associated with estate settlement in probate. Creditors are also unable to attach to these assets as well, which makes it a very efficient means of protecting all types of assets set in the trust.

Contact Kali Yost Law Estate Planning Attorney Portland

It is vital that any estate plan be validated when established. The best method of accomplishing that legal task is consulting an experienced estate planning law firm like the professionals at Kali Yost Law trusts attorney in Portland and let them evaluate your best potential estate plan.