Skip to Content

We are a Veteran Owned Business, providing 20% discounts for Veterans, First Responders, Elementary and High School teachers. Please contact us to set up a phone or Zoom meeting. Taking care of you and your family, It's What We Do!

Philadelphia Revocable vs. Irrevocable Trusts – What You Need to Know

Posted on Fri Sep 11, 2015, on Trusts

From our “Ask a Question” Mailbag: Philadelphia Revocable vs. Irrevocable Trusts

Most Recently Updated July 21, 2018.

“I am worried about having someone sue me in the future and would like to shelter my assets from creditors. I have read about Irrevocable Trusts and Revocable Trusts, do they both help avoid creditors and lawsuits?”

Where-Do-I-Contest-a-Will

Philadelphia Revocable vs. Irrevocable Trusts

Philadelphia Revocable vs. Irrevocable Trusts

A Revocable Living Trust is a wonderful tool with many uses, but it does nothing to help you avoid your creditors. Because a Revocable Living Trust is “Revocable.” That means you can take the assets back into your name at any time. Because you can take the assets back, any future creditor you have or any future lawsuit judgement against you can be enforced against the trust.

If you create an Irrevocable Trust and fund it before the creditor has a claim or the cause of action arises that creates the lawsuit, it can be designed so that that creditor has no way to access the funds. This means you must give the asset to the trust and have no right to reclaim the asset or control it. If you are willing to give up these rights, though, the Irrevocable Trust might be just what you are looking for.

To give you a better answer I would need to know more about the assets you wish to place in the trust and your overall estate planning goals. Feel free to contact me to set up a free consultation.

More Planning Questions?

Revocable and Irrevocable Trusts are only a piece of the Estate Planning process. By all means, if you want to learn more, please read my more detailed article, Estate Planning Everything You Need to Know.

In Conclusion: Philadelphia Revocable vs. Irrevocable Trusts

I hope that this article was helpful in explaining revocable and irrevocable trusts. Further, I included links to even more detailed information on my website so you can learn more. Therefore, please contact me and let me know how I did. Certainly, your comments and questions are welcome!

Let our Estate Planning lawyers help walk you through what can be a confusing process. To begin with, call to speak to one of our experienced estate planning lawyers.  By all means, our lawyers are ready to answer your questions. In fact, feel free to contact our office for a free consultation. Ultimately our goal is to make the process as painless as possible!

Wills, Trusts, Probate, and Estate Litigation, It’s All We Do!

 

Tags:

Estate Planning, Estate Planning Attorney, Estate Planning Lawyer, Irrevocable Trust, Pennsylvania, Philadelphia, Revocable Trust

Peter KlenkPeter Klenk

What Our clients are saying

Klenk Law Logo
Stars

Andrea Wilson

Peter is excellent. I had a very complicated situation with my parents' estate planning and potential Medicaid needs. Peter was very knowledgeable in estate planning matters, able to define the best solution for the situation. Additionally, he was congenial and able to communicate effectively to my senior citizen parents the benefits of estate planning. He earned my trust, and more importantly, my parents' trust in a 45 mins consultation period. Highly recommend Peter. He is very easy to work with.

Klenk Law Logo
Stars

D.P.

Like another reviewer, I contacted Peter through his website using the free consultation link, for a question regarding PA inheritance taxes. The question was quite technical and difficult to explain, and the answer was nowhere to be found on the web. Peter grasped precisely what I was asking, and provided a clear, helpful response (with a touch of humor) the very next day.

Klenk Law Logo
Stars

Sharon A.

We recently used Peter's firm to update our wills and trusts. We found he and his staff to be well-informed, professional and highly efficient. And equally valuable, Peter explains the law in terms that a layperson can readily understand.

Klenk Law Logo
Stars

Stephen T.

Peter and his staff handled all of our needs in a very professional and timely matter.

Klenk Law Logo
Stars

Brian M.

Peter explained a complex subject very clearly, helped us to decide the best approach to managing our estate and then made it very easy for us to execute the required documents. He will be a valuable resource for years to come and clearly has a great understanding of estate law that will lead to innovative solutions for us. I would unhesitatingly recommend him for estate planning.

Let us put our expertise to work for you.

Free consultation within 24 hours.