Revocable vs. Irrevocable Trusts: Which Is Right For Your Massachusetts Estate Plan?

Trusts are among the most powerful tools available in estate planning. They can help avoid probate, protect assets, minimize taxes, and provide long-term management for beneficiaries. However, the first major decision most families face is choosing between a revocable trust and an irrevocable trust. The right choice depends on your goals, your assets, and your stage of life.Understanding the distinctions between the two helps you evaluate which trust structure supports your long-term objectives.What Is A Revocable Trust?A revocable living trust is one you can change or revoke at any time while you are alive and mentally competent. You usually serve as your own trustee initially, maintaining complete control over your assets. You can amend the terms, add or remove beneficiaries, change trustees, or terminate the trust entirely if your plans change.Key advantages include:

avoids or greatly reduces probatemaintains privacy because it is not filed in probate courtallows quick transfer of assets at deathprovides continuity if you become incapacitatedeasy to amend as life circumstances change

However, because you retain control over the assets:

they are not protected from creditorsthey are countable for Medicaid eligibilitythey remain part of your taxable estate

So revocable trusts are typically best for clients who want probate avoidance, flexibility, and incapacity planning, but notlong-term asset protection.What Is An Irrevocable Trust?An irrevocable trust generally cannot be changed or revoked once created and funded. When assets are transferred into an irrevocable trust, you relinquish control and ownership. That loss of control is what creates powerful legal benefits.Potential advantages include:

protection from many creditorsremoval from your taxable estateeligibility planning for Medicaid/MassHealthshielding assets from nursing home spend-downpreserving wealth for children or grandchildren

Because irrevocable trusts limit your access to the assets, they require careful planning. They are often used for:

Medicaid/MassHealth planningestate tax reductionlife insurance trusts (ILITs)business and asset protectionplanning for long-term care costs

Timing also matters. Medicaid/MassHealth has a five-year look-back period, so transferring assets into an irrevocable trust must be done well in advance of any application for benefits.Which Type Of Trust Is Right For You?We typically recommend:Revocable Trusts for clients who want:

probate avoidanceflexibilityprivacysmooth administration for family members

Irrevocable Trusts for clients who need:

long-term care planningMedicaid planningestate tax planningcreditor protectionprotection of assets for spouses or children

Most comprehensive estate plans in Massachusetts use both trust types for different goals.

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Call Troy Sullivan Today!If you are unsure which trust is right for you, you are not alone — the decision can feel complex. We can help you design the right structure for your goals, assets, and family situation.

Contact The Sullivan Firm P.C. to schedule a consultation about establishing the right trust for your Massachusetts estate plan. Call 978-325-2721 today.