Having Both An Irrevocable And A Revocable Trust
Almost everyone should have both an irrevocable and a revocable trust. You need a revocable trust to hold ownership of the asset that you will use in your day to day life. This revocable trust will hold your income such as retirement and social security. Occasionally it might also hold the home where you may live. On the other hand, most people need an irrevocable trust to assure that they have provided for the needs of their families even if some terrible incident were to bring about great financial devastation. Such an incident might not be your fault at all. A simple car accident can bring about a lawsuit that will possibly destroy your finances for years and years to come. Some people never recover from such a financial disaster, but an irrevocable trust can assure that you have made arrangements to provide for the needs of those you love the most. Fortunately, irrevocable trusts can also maintain some flexibility because we understand that situations change.
Therefore, you may be able to retain the right to change beneficiaries of the irrevocable trust if there is an unexpected death or incapacity event involving your beneficiaries. Be careful to discuss with your estate planning attorney which assets should go to which trusts as there is no single answer that is suitable for every situation
Knowing The Type Of Trust That Suits Your Needs
Almost everyone who desires to avoid probate can make use of a revocable trust, and given the cost and time associated with probate, a revocable trust is a good beginning place for most people considering estate planning, Most people reading this have family members and friends that they wish to support presently and after death. For those situations, an irrevocable trust can be a great help but if this is not your situation, an irrevocable trust may be still important if there is a possibility your health will suffer and that you may someday be forced into long-term care. Talk to me about the life circumstances that you are facing, and I will give you my honest opinion as to what type of trust or trusts will be best to meet your goals. I recognize and accept that not everyone has the same goals, and we all have different lifestyles. Therefore, I do not have a single perfect answer that suits every situation. I will consider your circumstances and your goals and make recommendations accordingly but in the end you are the person who makes the final decision and I will follow that decision, even if it is not exactly what I suggested for you.
Irrevocable Trusts And Medicaid Planning In Oklahoma
An irrevocable trust that is properly drafted and funded at the appropriate time in the appropriate manner will not be considered an asset that is available to a potential Medicaid beneficiary. This can be very helpful when you have children and a surviving spouse that need your support even if you were to suffer a terrible health related issue and be forced into long-term care. Most of us recognize that life is uncertain and that we could suffer a car accident, a stroke, a heart attack or other such incident that could immediately destroy our ability to earn a living and support our family. Therefore, most people should set aside money in an irrevocable trust to assure that their loved ones are not left penniless even if the unexpected health setback or lawsuit destroys our long-term goals.
In order for such plans to be effective against Medicaid, they need to be done well in advance. I can help you with that and invite you to join me for one of our estate planning workshops where we discuss these goals and options in greater detail.
For more information on Irrevocable And Revocable Trusts, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (405) 754-4166 today.
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