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Deciding between revocable, irrevocable trusts is not always easy

Because so many estate planning tools are available, many Arkansas residents may face some confusion when it comes to deciding which tools are right for their plans. Though trusts can be useful planning tools for most people who want to protect assets, it can be a challenge to determine which type of trust to use. Even deciding between the basic information of whether to use a revocable or irrevocable trust can pose a challenge.

Both revocable and irrevocable trusts have their pros and cons. With revocable trusts, property owners still technically maintain ownership of the assets placed into the trust. This means that owners can manage the assets as they see fit, but it also means that any tax matters associated with the assets remain the responsibility of the owner.

With an irrevocable trust, the assets no longer belong to the original owner. This can be beneficial when it comes to avoiding estate taxes or protecting assets from creditors, but it does mean that the original owner no longer has any say over what happens to the assets. As a result, if the person wanted to sell the property or even just remove it from the trust, it is not an option because the terms of an irrevocable trust cannot be changed.

Though trusts are certainly useful, it is important to give each type its due consideration. No one wants to end up in a difficult position because he or she did not fully understand what using a certain trust would mean. Fortunately, Arkansas residents can discuss their trust options with estate planning attorneys to determine which may best suit their needs. 

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