When considering your options for estate planning, you will need to consider whether your estate plan should revocable or irrevocable? A revocable estate plan can be changed, amended, you can add to it, or you can take away from it. An irrevocable estate plan, in most instances, cannot be changed or amended.
Why choose one type of plan over the other? Revocable estate planning allows you flexibility and keeps you in control, but also exposes your assets to estate taxes and nursing home expenses. Irrevocable estate planning is used to protect assets from estate taxes and/or nursing home expenses.
Examples of a revocable estate plan are a last will and testament, a revocable living trust, a transfer on death account, and a life estate deed with full powers. You can change these documents or designations any time during your life.
Examples of irrevocable estate planning are irrevocable trusts, adding a joint owner to your property or to an account, gifting, and a life estate deed without powers. Once these items are in place you will be unable to unilaterally revise them.
The decision of which plan best fits your circumstances is a conversation you will want to have with your estate planning attorney.
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