What’s The Difference Between Revocable And Irrevocable Trusts In Illinois?

The biggest difference between a revocable trust and an irrevocable trust in Illinois is control.

A revocable trust, also known as a living trust, is created during your lifetime and typically can be changed, amended, or revoked by the person who created it. Revocable living trusts are trusts you create and fund during your lifetime and that you have the power to amend or revoke, according to the Illinois State Bar Association. Under the Illinois Trust Code, a trust is revocable or amendable only if the trust document expressly states that it is revocable or amendable. Revocable trusts are commonly used to avoid probate, protect privacy, and facilitate the management of assets by a successor trustee if the creator becomes incapacitated or passes away.

The irrevocable trust differs in that the person creating it generally loses the right to change or cancel it at will. The trade-off is that irrevocable trusts may offer stronger planning benefits, such as asset protection, Medicaid planning, tax planning, or asset preservation for beneficiaries. But these trusts need to be carefully drafted as the creator gives up control.

A revocable trust is often best for flexibility and avoiding probate. When the objective is long-term protection or planning beyond simple estate distribution, an irrevocable trust is often the trust of choice. The right choice for you depends on your assets, family situation, tax concerns, creditor concerns, and long-term care planning goals.