The following is my answer to a Quora question: “What is your best advice on a doing a revocable trust?”
A revocable trust has the advantage of being flexible. You may choose to unilaterally change the terms of the trust at any time, from the designated beneficiaries, to the assets under trust. However, that is the only advantage that is significant. If you are going to the trouble of setting up a trust, you may as well consider the advantages of mitigating your tax liability, and protecting your assets under management from creditors and claims. That means an irrevocable trust.
Before setting up a trust, you need to
carefully consider the following:
1. Who are your trustees?
2. Who are your
beneficiaries?
3. What are the terms of
disbursement?
4. What are the assets you would like the trust to manage?
If you are going through all the effort to
set up a trust, you may as well take it a step further, and make it
irrevocable.
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