Revocable Versus Irrevocable Trusts

Unless you have gone through the probate court process in Arkansas, you may not understand just how drawn out and painful the process can be for your loved one. At a minimum, the process will take six months, but a more typical timeline is a year to 18 months.

One advantage of a revocable or irrevocable trust when compared with a simple will is avoiding probate altogether. Another is to protect assets whether during your own lifetime or that of your children.

At Rippy, Stepps & Associates, our attorneys will tailor your estate plan to fit with your family's unique needs. We can answer any of your questions about trusts and help you decide if one is appropriate for you. Then we ensure the set up process is painless.

Benefits Of A Revocable Trust

As the name implies, a revocable trust can be amended at any time during your life. This type of trust prevents your loved ones from having to go through probate court. Here are a couple other benefits:

  • Simple to set up and manage during your lifetime and
  • Easy transition to successor trustee(s)
  • Protects the gift you leave to children from divorce, creditors and unforeseen life circumstances

A revocable trust may also play a role in an elder law conversation.

How Does An Irrevocable Trust Differ?

An irrevocable trust cannot generally be amended. This type of trust is also more restrictive, limiting your access to the principal held within the trust. But with these restrictions come an added benefit of asset protection during your lifetime.

While these trusts are not for everyone, they may play a valuable role for professionals, including physicians and executives who need sophisticated solutions.

These types of trusts may also serve as a tool in Medicaid planning when considering future long-term care costs. Because Medicaid has a five year look back period, it is crucial to seek legal advice before health problems develop. For example, around the age of 80 it may be a good idea to schedule a consultation to discuss these potential concerns.

Why You Need To Set Up A Meeting Sooner Rather Than Later

Estate planning can have the tendency to stay on the back burner as life gets busy. But nothing is certain and you need the proper documents in place to protect your family in a worst case scenario.

To set up a time to talk with our attorneys, please call our office at 501-358-3932. You can also email us to get started.