Revocable vs. Irrevocable Trusts: Which One Is Right for You in New York?

Creating a trust is an effective way to protect assets, manage your estate, and provide for loved ones. In New York, two of the most common trust options are revocable trusts and irrevocable trusts. While they both serve important estate planning purposes, the right choice depends on your goals, family needs, and financial situation.

Revocable Trusts in New York

A revocable trust, also known as a living trust, allows the creator (the grantor) to maintain control over the assets placed in the trust. You can amend or revoke the trust at any time during your lifetime.

Benefits of a revocable trust:

• Flexibility – You can add or remove assets and change beneficiaries.
• Avoid probate – Assets pass directly to heirs without court involvement.
• Privacy – Unlike wills, trusts are not public records.

However, because you retain control, the assets remain part of your estate for tax and creditor purposes.

Irrevocable Trusts in New York

An irrevocable trust, once created, generally cannot be changed or revoked. The grantor gives up ownership and control of the assets placed into it.

Benefits of an irrevocable trust:

• Asset protection – Assets are shielded from creditors and legal judgments.
• Estate tax advantages – Removes assets from your taxable estate.
• Medicaid planning – Can help preserve eligibility for long-term care benefits.

The trade-off is that you lose flexibility, as modifications are very limited once the trust is established.

Choosing the Right Trust

If maintaining control and flexibility are priorities, a revocable trust may be best. If protecting assets, reducing estate taxes, or planning for long-term care are your main concerns, an irrevocable trust might be the stronger option.

At Jack Weissman, Attorney at Law, we can guide you through the process of determining which trust structure best aligns with your goals. We assist clients in Brooklyn and throughout New York with customized estate planning solutions.