If you're planning your estate in 2025, you've likely heard that setting up a trust can help your family avoid probate, reduce taxes, and protect your legacy. But not all trusts work the same way.
The most common question we hear at Heritage Law Office is:"What's the difference between a revocable and irrevocable trust-and which one do I need?"
Understanding these two tools can help you avoid costly mistakes and build a plan that actually works when your family needs it most.
Contact us by either using the online form or calling us directly at 414-253-8500 for legal assistance.
What Is a Trust?
A trust is a legal arrangement that lets you transfer assets to a trustee, who holds and manages them for your benefit or the benefit of others. Unlike a will, a trust can take effect during your lifetime-and it doesn't go through probate.
You can use a trust to:
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Avoid probate court
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Control how and when assets are distributed
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Protect your home and savings from long-term care costs
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Provide for minor children, special needs beneficiaries, or blended families
The two main types-revocable and irrevocable-offer different protections and tradeoffs.
What Is a Revocable Trust?
A revocable trust (also called a living trust) is flexible. You can:
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Create it during your lifetime
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Change it at any time
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Move assets in and out freely
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Serve as your own trustee while you're alive and competent
Benefits of a revocable trust include:
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Avoiding probate on your home, savings, and other titled assets
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Allowing a successor trustee to step in if you become incapacitated
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Keeping your estate plan private (unlike a will, which becomes public record)
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Making updates easily if your family, goals, or finances change
However, a revocable trust does not protect your assets from creditors, lawsuits, or Medicaid recovery. That's where irrevocable trusts come in.
What Is an Irrevocable Trust?
An irrevocable trust is more rigid-but more powerful. Once assets are placed in this type of trust, you generally can't take them back or change the terms without court approval or the agreement of all beneficiaries.
But the tradeoff for that permanence is stronger legal protection.
Key advantages of an irrevocable trust in 2025:
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Shielding assets from long-term care spend-downs (essential for Medicaid planning)
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Protecting wealth from creditors and lawsuits
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Reducing estate taxes for high-net-worth individuals
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Preserving family homes and generational wealth
To be effective, irrevocable trusts must be properly drafted and funded-and often include a trustee who is someone other than the person setting up the trust.
When to Use a Revocable Trust
A revocable trust is ideal if your primary goal is to:
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Avoid probate for your family
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Maintain full control over your assets while alive
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Plan for mental incapacity without needing a court-appointed guardian
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Keep your estate and beneficiaries private
It's a strong choice for families who want simplicity, privacy, and flexibility-especially if there's no concern about Medicaid or creditor protection.
Learn more about how revocable trusts fit into broader wills and estate planning strategies.
When to Use an Irrevocable Trust
You should consider an irrevocable trust if you:
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Are worried about the cost of long-term care and don't want to lose your home to Medicaid
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Want to protect assets from lawsuits, creditors, or divorce
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Have a child with special needs who needs ongoing care without disqualifying from benefits
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Are gifting wealth to future generations and need estate tax planning tools
Irrevocable trusts are often used as Medicaid Asset Protection Trusts, which can shelter your home and savings if structured at least five years before applying for Medicaid.
Explore our Medicaid Asset Protection Trusts resource to see if this path is right for you.
Contact an Attorney to Help You Choose the Right Trust in 2025
Choosing between a revocable and irrevocable trust isn't about picking one "better" option-it's about finding the right fit for your goals, family structure, and asset protection needs.
At Heritage Law Office, we help individuals and families build comprehensive estate plans that protect what matters most-without unnecessary complexity or cost.
Call 414-253-8500 or contact us online to schedule your trust planning consultation.
Frequently Asked Questions (FAQs)
1. Can I switch from a revocable to an irrevocable trust later?
Yes, you can. Many clients start with a revocable living trust to avoid probate and later create an irrevocable trust for Medicaid or asset protection as their needs change. However, it's important to work with an attorney to ensure the transition is done properly-especially to avoid triggering taxes or Medicaid penalties.
2. Does a revocable trust protect assets from nursing home costs?
No. Because you maintain full control over a revocable trust, those assets are still counted as yours for Medicaid and creditor purposes. To protect your home or savings from nursing home costs, you need an irrevocable trust like a Medicaid Asset Protection Trust, typically created at least 5 years before applying for Medicaid.
3. Can I be the trustee of my irrevocable trust?
In most cases, no. To gain the full asset protection benefits of an irrevocable trust, you typically must appoint someone else-such as an adult child, relative, or professional trustee. Retaining too much control can invalidate the protections you're seeking.
4. Are trusts only for wealthy people?
Absolutely not. Trusts can help anyone who owns a home, has children, or wants to avoid probate. In 2025, the cost of probate and long-term care makes trusts more relevant than ever for middle-class families-especially for those who want to keep their affairs private and avoid financial disruption for their loved ones.
5. How do I decide which type of trust I need?
Start by thinking about your goals. If your main concern is avoiding probate and keeping control, a revocable trust may be ideal. If you're worried about Medicaid, nursing homes, or lawsuits, an irrevocable trust may offer more protection. The best way to decide is to meet with an estate planning attorney who can review your full financial and family picture.