Setting up a Trust?

What is the difference between a revocalble trust and an irrevocable trust? When should I start setting up a trust? What are the benifits and downfalls to having one?

---

Answers:
A revocable trust can be as simple as a "living trust". It allows you to dictate how things happen with greater control than just a will. An irrevocable trust is usually used if you might want to get the ownership of property out of your name, but they come in many different flavors. The trustee of the trust (this can be you) will be able to control the trust from that point on.

It is common for life insurance to be owned by an irr trust (I assume this is why you posted it on this group) because if you own $1m of life insurance, you just increased your estate by $1m at your death. Depending on your situation, that could be detrimental. Check with an attorney.

---

For a revocable trust, you can change how it runs, how it pays and who gets the money. For an IRREVOCABLE trust, you can't change ANYTHING, the money COMPLETELY leaves your control.

Talk to an accountant about which one will best suit your needs.

---