The estate planning and probate offices of Tara R. Cancel offer comprehensive client service on all aspects of wills, trusts, estate administration, and probate litigation. Our clients come from all over Rhode Island; we also serve the needs of people from other states who find themselves responsible for the administration of a Rhode Island trust or decedent's estate. I encourage you to contact the law offices of Tara R. Cancel today to schedule a free consultation to determine whether a revocable trust or an irrevocable trust best suits your estate planning needs.
Please call 401-270-9963.
Revocable Trust
A Revocable Trust is a trust that may be altered or terminated at any time throughout the grantor’s lifetime. Since the grantor retains the ability to amend or revoke the trust, the assets funded into the trust will still be considered assets of the grantor for the creditor and estate tax purposes. Therefore, a grantor of such a trust will not receive the benefits of creditor protection should they be sued; all the trust assets will be considered assets of the grantor(s) for Medicaid planning purposes, and all assets held in the name of the trust at the time of the grantor’s death will be subject to both state estate taxes and federal estate taxes. Nevertheless, a revocable trust is beneficial in planning for mental disability as the assets of the trust at the time the person becomes mentally incapacitated can be managed by their trustee instead of a court-appointed guardian or conservator; to avoid probate as the assets held in the trust at the time of the grantor’s death will pass directly to the beneficiaries named in the trust agreement; and to protect the privacy of your property and beneficiaries following the death of the grantor, as the trust document does not need to be submitted to the Probate Court and thus, will remain a private document.
Irrevocable Trust
Unlike a revocable trust, an irrevocable trust cannot be changed or modified once the grantor(s) signs the trust agreement. In addition, a revocable trust will become irrevocable upon the death of the grantor. An irrevocable trust is beneficial to meet certain estate planning goals, such as protecting your assets for Medicaid planning purposes, assets protection or charitable estate planning.