The creation of a trust may make it easier to ensure that your Connecticut estate planning wishes are carried out after you die. It may also make it easier to ensure that your affairs are properly managed during your lifetime. However, this exact purpose that such a document serves will depend largely on whether it is classified as revocable or irrevocable.
What is a revocable living trust?
A revocable living trust is a document that you can alter at any time and for any reason because you get to serve as trustee. As the name suggests, you can get rid of the document at any time you wish without seeking permission from its beneficiaries. The fact that you are the trustee also means that you retain control over the assets that are titled in the trust’s name. It’s worth noting that your living trust will become an irrevocable trust after you pass away.
What is an irrevocable trust?
An irrevocable trust generally cannot be altered without the permission of the trustee and the beneficiaries. Furthermore, since you usually don’t serve as the trustee, you lose control over any assets that are titled in the trust’s name. However, this lack of control generally means that your property is protected from being seized by creditors or by a spouse after a divorce.
If you want to add a trust to your estate plan, it’s important to understand the differences between an irrevocable trust and a living trust. It’s also critical that the document is properly formatted to ensure that it can serve as a vehicle to manage or distribute your assets. Otherwise, it may be at risk of being wholly or partially invalidated by a judge.