There are many advantages and disadvantages to a revocable trust. One big benefit is that when you put assets into a revocable trust, those assets are able to transfer outside of the probate process. The assets in the trust are also protected if you become incapacitated because your backup trustee will be able to take over the management of the money and property held within the trust. And, if you make a revocable trust, you have a lot of flexibility because you can modify or end the trust at any time.
However, there are also some downsides to a revocable trust as well. For example, this type of trust won’t protect assets from creditors or if you become unable to live by yourself and face costly nursing home bills or long-term care expenditures. You also won’t get protection from estate tax.
Read on here to find out more about the pros and cons of an irrevocable trust.