I always talk about the questions I get from clients or other people about estate and trust planning. One of the questions I get the most is about irrevocable trusts. People often say, “You know, I’m scared of an irrevocable trust. Do I really want one? Why would I want one if it’s irrevocable? That means I can’t change anything about it,” and it scares people. I get that, and I understand why. But I think there are a lot of misunderstandings around the concept.
A few things to keep in mind: First, any trust, and in particular irrevocable trusts, can be as flexible or as rigid as you need or want them to be. Your family and financial circumstances will dictate how flexible or rigid the trust should be. So know that there is a ton of flexibility—that’s the name of the game. When I sit down with a client, I ask, “What do you want to accomplish?” I let them spell it out for me, and then we start crafting how all the mechanics are going to come together. We build in flexibilities or, if needed, more strict provisions that don’t allow for certain changes.
Either way, we’re crafting a plan based on what you want the trust to do and how we can make sure you’re not locked in once the irrevocable trust is finalized. There’s a lot of flexibility in how you can structure it.
The other beautiful thing about an irrevocable trust is the asset protection benefits. Because it is irrevocable, it offers significant protection. That’s what trust planning is all about—protecting your assets. And with irrevocable trusts, we’re talking about creditor protection, which includes protection from lawsuits, malpractice suits, creditor judgments, and divorcing spouse claims. It’s designed to protect you and your assets from these potential threats.
So, don’t worry or fret about whether or not you need an iron-clad structure. We can create whatever level of protection or flexibility you want to ensure that your assets and your legacy are secure.