A trust is a legal instrument in which you agree to place your assets in the care of someone else (a trustee) for the purpose of managing money and property, often for purposes of estate planning. There are two main types of trusts used for estate planning: revocable and irrevocable. Both have their advantages and drawbacks, but for the purposes of this article, let’s focus on how a revocable trust is used for estate planning.

A Tampa CPA from Reliance Consulting, LLC, can help you decide what sort of plan is right for you as you look to the future and decide how best to protect and provide for your loved ones. Estate planning is vital, because a lack of planning might leave your assets vulnerable when you are gone. A revocable trust might be the way to go, depending on your circumstance. What, then, is a revocable trust?

As the name implies, it is a trust whose terms can be changed. An irrevocable trust is one whose terms cannot be changed. A revocable trust is a good way to help your beneficiaries avoid the costs and delays often associated with probate. This is because a revocable trust transfers assets to your trustee during your lifetime. What that means is the trustee has the duty to immediately manage your assets upon your death, rather than having to wait. One thing to keep in mind about a revocable trust is that it becomes irrevocable when it no longer reports income under your social security number, either when you die or for any other reason.

To learn more about how best to formulate your estate plan, contact Reliance Consulting today.