What is the difference between an irrevocable trust and a revocable trust?

An irrevocable trust and a revocable trust are two types of trusts recognized by asset protection law in New York. Both types of trusts are legal arrangements whereby assets are placed in a trust and managed by a trustee. The main difference between an irrevocable trust and a revocable trust is that an irrevocable trust cannot be changed or revoked after it has been created, while a revocable trust can be changed or revoked at any time by the grantor. The primary benefit of using an irrevocable trust is that it offers more protection from creditors than a revocable trust. Assets placed in an irrevocable trust cannot be taken away by creditors or other legal entities. The grantor transfers ownership of the assets to the trust, which is managed by the trustee. This means that the grantor no longer has control over the assets and cannot change the terms of the trust. Revocable trusts allow more flexibility and control for the grantor. They can be amended or revoked at any time by the grantor, and all decisions regarding the trust remain in the control of the grantor. This makes them a good option for people who want to retain a degree of control over their assets. Both types of trusts have different benefits and drawbacks, and it is important to understand the differences between the two when considering asset protection in New York. An experienced estate planning attorney can provide advice and guidance on choosing the right type of trust for your needs.

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What is the difference between an irrevocable trust and a revocable trust?

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