If you are considering making an estate plan, you may want to consider a trust. There are two basic types: revocable or irrevocable.
Irrevocable trusts
If you are entirely sure about setting up the trust and certain that you will never change your mind, you may go for an irrevocable trust. Once you make it, there is no going back, the property or assets you put into the trust are out of your control forever. It also keeps them safe from the reach of creditors. Irrevocable trusts have more tax advantages so you can pass on more of your estate to your family, rather than the tax office.
Revocable trusts
If you think you may change your mind at some point or need to access the contents of the trust, you should choose a revocable trust. You can make changes to it, or cancel it entirely. Any assets you put into this trust will not be subject to probate. When you die, it will usually become an irrevocable trust, passing on your assets in the way you want.
There are some disadvantages to a revocable trust. It will not protect your assets if you owe money to someone. Creditors can ask the court to access assets kept in a revocable trust. However, this still makes it harder for them than if you do not put your assets into any kind of trust.
Within these two categories, irrevocable and revocable, there are specific types of trust to choose from. Seek the advice of an experienced Detroit estate planning attorney to select the right option. You may not even need a trust. A simple will is enough for many people.
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