Revocable Trust

Irrevocable Trust

A trust that generally cannot be changed, modified, or revoked once it has been established, effectively removing the assets from the grantor's ownership and control. Because the assets are no longer considered part of the grantor's estate, irrevocable trusts can provide significant estate tax benefits and asset protection from creditors. They are commonly used in advanced estate planning strategies where tax reduction and wealth preservation are primary goals.

Trust

A legal arrangement in which one party, called the trustee, holds and manages assets on behalf of another party, known as the beneficiary. Trusts can be used to control how and when your assets are distributed, potentially reduce estate taxes, and avoid the probate process. There are many types of trusts, each designed to address specific financial and estate planning goals.

Probate

The legal process through which a deceased person's will is validated by a court, their debts are settled, and their remaining assets are distributed to beneficiaries. Probate can be time-consuming and costly, often taking months or even years to complete depending on the complexity of the estate and state laws. Many estate planning strategies, such as trusts and beneficiary designations, are specifically designed to help assets avoid probate.

Pour-Over Will

A type of will designed to work in conjunction with a revocable living trust, ensuring that any assets not already held in the trust at the time of death are transferred, or 'poured over,' into the trust. This acts as a safety net to catch any assets that were inadvertently left outside the trust during your lifetime. Assets that pass through a pour-over will still go through probate before being added to the trust.