Rochester Elder Law logo

Call (585) 256-0090

Recent

Close up of an elderly man signing a legal document
December 10, 2024
When it comes to signing legal documents, mental capacity isn't as simple as 'capable' or 'incapable.' Whether you're helping an aging parent update their will or concerned about a loved one's ability to manage contracts, knowing the legal standards for capacity can help you make informed decisions and avoid future complications. Learn what courts look for and the key warning signs you shouldn't ignore...
Family having a discussion at the dinner table with a Christmas tree in the background.
December 3, 2024
The holiday season brings families together, offering more than just festive celebrations. For adult children with aging parents, these gatherings provide a valuable opportunity to observe how well their loved ones are managing and to have important conversations about future care needs. Here's what to look out for and how to approach these discussions...
Older couple meeting with elder law attorney about estate planning for an early dementia diagnosis.
November 19, 2024
When a loved one receives an Alzheimer's or dementia diagnosis, families in Rochester and throughout New York face many challenges. While managing medical care is often the first priority, creating a comprehensive estate plan is equally crucial. Early planning helps protect both your loved one's wishes and their financial security. Learn why early planning matters...
A gavel is sitting on top of a last will and testament
November 12, 2024
When a loved one passes away, dealing with estate matters can be challenging enough without the added stress of an executor who isn't performing their duties properly. Whether you're concerned about your mother's estate or planning ahead for your own estate, understanding the process of replacing an executor in New York State is crucial.
Two puzzle pieces with a heart drawn on them on a blue background.
October 8, 2024
At Rochester Elder Law, we believe in a holistic approach to planning for your future. This approach, known as life care planning, combines the crucial elements of estate planning and elder law to ensure you're prepared for every stage of life. Let's explore how these areas intersect and why they're essential for New York residents...
Show More
Revocable vs. Irrevocable Trusts: Which Is Right for You?
Revocable vs. Irrevocable Trusts: Which Is Right for You?
January 9, 2024

Crafting an estate plan is deeply personal. Your goals, values, and vision for your legacy shape the decisions you make. One key decision is whether to use a revocable or irrevocable trust. Both offer benefits, but also have limitations. Let's walk through the key differences, when each trust type makes sense, and how an estate planning attorney can guide you to the right choice.

 

Revocable vs. Irrevocable Trusts: Key Differences

 

Control
The hallmark of a revocable trust is flexibility. You maintain control of the assets and can modify or revoke the trust. An irrevocable trust means what it sounds like - once created, it generally can't be changed. The assets are controlled by the trust terms or a trustee. This loss of control can be positive, like for tax planning, but requires certainty.

 

Taxes
A revocable trust doesn't provide estate tax benefits, though it can avoid probate. An irrevocable trust can remove assets from your estate and reduce potential estate taxes. There are complex tax implications with each that require expertise.

 

Creditor Protection

A revocable trust offers limited protection from creditors. An irrevocable trust can shield assets from creditors, depending on its terms. This can benefit professionals with liability exposure.

 

Probate Avoidance
Both trusts allow you to avoid probate on trust assets. But an irrevocable trust's inflexibility may make it harder to adapt to changing heirs or needs.

 

Privacy
Both trusts are generally private, unlike a will. But an irrevocable trust's potential for involving more parties can compromise privacy.

 

When A Revocable Trusts Make Sense


If you value control and flexibility, a revocable trust offers advantages. It also works well for modest estates unlikely to face estate taxes.


Common uses cases include:

  • Probate avoidance
  • Incapacity planning
  • Blended family planning
  • Special needs beneficiaries
  • Real estate ownership in multiple states

 

When Irrevocable Trusts Are Preferable


Irrevocable trusts require giving up control in exchange for benefits like tax planning and creditor protection.


They make sense when:

  • You want to reduce potential estate taxes
  • You have concerns about asset protection
  • You want to qualify for Medicaid long-term care benefits
  • You want to make charitable gifts beyond your lifetime
  • You want to implement business succession planning
  • You have certainty about your intentions

 

Seek Experienced Legal Guidance


With complex factors involved, it's best to work with an estate planning attorney to decide between a revocable or irrevocable trust. They can help craft the terms, optimize tax planning, and ensure your trust achieves your goals.


If you already have a trust, they can review the documents, ensuring they still meet your needs and comply with changes in the law.


Don't go it alone. Let our firm guide and support you. Contact us today to start the conversation and set your mind at ease about this important decision.

more news you can use
Close up of an elderly man signing a legal document
December 10, 2024
When it comes to signing legal documents, mental capacity isn't as simple as 'capable' or 'incapable.' Whether you're helping an aging parent update their will or concerned about a loved one's ability to manage contracts, knowing the legal standards for capacity can help you make informed decisions and avoid future complications. Learn what courts look for and the key warning signs you shouldn't ignore...
Family having a discussion at the dinner table with a Christmas tree in the background.
December 3, 2024
The holiday season brings families together, offering more than just festive celebrations. For adult children with aging parents, these gatherings provide a valuable opportunity to observe how well their loved ones are managing and to have important conversations about future care needs. Here's what to look out for and how to approach these discussions...
Older couple meeting with elder law attorney about estate planning for an early dementia diagnosis.
November 19, 2024
When a loved one receives an Alzheimer's or dementia diagnosis, families in Rochester and throughout New York face many challenges. While managing medical care is often the first priority, creating a comprehensive estate plan is equally crucial. Early planning helps protect both your loved one's wishes and their financial security. Learn why early planning matters...
Show More

Still have questions?

Tell us about your situation.

Schedule a Consult
Share by: