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Which Trust is Best for You - Revocable or Irrevocable?

Updated: Mar 17


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You’ve probably heard that having a trust can help keep your family out of court and minimize conflicts in the event of your death or incapacity. If you haven’t, you’re hearing it now. If you own any “probatable” assets in your name at the time of your incapacity or passing, your family must go to court to access them.


Not sure if your assets are “probatable”? Contact me to schedule a Family Wealth Planning Session, and I’ll help you determine what’s best for you.


Many people ask whether they need a revocable living trust or an irrevocable trust. Lately, I’ve seen more clients requesting an irrevocable trust without fully understanding how it works. This article will help you understand the differences so you can make the right choice for your situation.


What Is a Trust?


At its core, a trust is a legal agreement between three parties:


  • Grantor (You): The person who creates the trust.

  • Trustee: The person (or entity) who manages the assets in the trust.

  • Beneficiary: The person or people who benefit from the trust assets.


This agreement outlines how your assets should be managed and distributed, both during your lifetime and after you pass away. While the concept is simple, the terms of the trust agreement can be complex, which is where expert guidance is essential.


Understanding Revocable Living Trusts


A revocable living trust allows you to remain in full control of your assets during your lifetime while also setting up a plan for what happens when you can no longer manage them.


Here’s how it works:


  • While You Are Alive and Well: You are the grantor, trustee, and beneficiary. This means you control everything and can make changes at any time.

  • If You Become Incapacitated: The trust defines how incapacity is determined. If you are deemed unable to manage your affairs, your named successor trustee takes over to manage the assets for your benefit.

  • After Your Death: The trust becomes irrevocable, and your successor trustee distributes or manages the assets for your beneficiaries according to the instructions in the trust.


Benefits of a Revocable Trust


  • Avoids probate, keeping your estate out of court.

  • Ensures seamless management of your assets if you become incapacitated.

  • Allows flexibility — terms can be changed as long as you are alive and capable.

  • Provides an option for ongoing asset protection through Lifetime Asset Protection Trusts, which can shield your beneficiaries from future creditors, lawsuits, and divorces.


If protecting your beneficiaries long-term is important to you, talk to me about incorporating a Lifetime Asset Protection Trust into your plan.


Understanding Irrevocable Trusts


An irrevocable trust functions similarly to a revocable trust in that it holds assets for beneficiaries, but there’s a critical difference:


Once assets are placed in an irrevocable trust, they cannot be removed or controlled by you.


While there are limited exceptions, in most cases, the trust terms cannot be changed after it has been created. The assets in the trust legally belong to the trust, not you.


Why Choose an Irrevocable Trust?


An irrevocable trust is useful in certain situations, such as:


  • Asset Protection: Shields assets from lawsuits and creditors.

  • Estate Tax Planning: Removes assets from your taxable estate, potentially reducing estate taxes.

  • Medicaid Planning: Can help qualify for long-term care benefits while protecting assets from being spent on care.


Since irrevocable trusts remove control over the assets, they aren’t the right fit for everyone. If you’re considering one, you must work with a knowledgeable estate planning attorney to determine if it aligns with your goals.


Choosing the Right Trust for You


Selecting the right trust requires understanding your family dynamics, financial situation, and long-term goals. When you meet with me for a Family Wealth Planning Session, we will:


✔ Review your assets and discuss whether you need a trust at all.

✔ Determine whether a revocable or irrevocable trust best suits your needs.

✔ Outline strategies to maximize asset protection and minimize legal complications.


Never select a type of trust without professional guidance. Avoid relying solely on financial advisors or insurance professionals to make this decision — trusts are complex legal documents that require expert legal planning.


Let’s Create a Plan That Works for You


Estate planning is about more than just legal documents — it’s about peace of mind. When you work with me, I’ll take the time to understand your unique circumstances and help you create a plan that protects you and your loved ones.


Schedule a Family Wealth Planning Session today to start the process. Together, we’ll make the right decisions for your future.



This article is a service of the Law Office of Keoni Souza, an estate planning law firm in Honolulu, Hawai`i. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That is why we offer a Family Wealth Planning Session, during which you will get more financially organized than you have ever been before and make all the best choices for the people you love. You can begin by contacting our office today to schedule a planning session and mention this article to find out how to get this $750 session at no charge.


Disclaimer: All information on this website is for informational purposes only and is not legal advice. You should contact an attorney trained to work with families on estate planning matters regarding your specific situation. Use of and access to this website or any of the email links contained within the site do not create an attorney-client relationship between the Law Office of Keoni Souza, LLC, and any users or any other party.

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