Revocable and Irrevocable Living Trusts
Differences If Your Trust Is An Irrevocable Living Trust
We have provided a sample of an Irrevocable Living Trust. You should know that this is simply a sample of such a trust, and that each state law may affect the provisions which can be set forth in your trust to make it valid. Of course, this same state law may render some of the provisions in your trust invalid, if the law is not fully complied with in the creation of your trust. Also, each year state trust laws change through both legislative action and the judiciary opinions. Your trust created one year may not be effective the following year, if your state laws have changed.
It is critical to examine your trust needs with an attorney experienced in this area, and not to create your own living trust based on the documents provided here. These documents are only provided so that a general understanding of the trust concept can be gained.
The detailed discussion of Revocable Living Trusts in almost every respect applies here, and thus, will not be repeated. There are two noticeable differences between the Revocable Living Trust and the Irrevocable Living Trust: (1) there is provision in Article V for specific distributions; and (2) there is no amendment or revocation provision.
With respect to Article V, we included a different method by which to distribute property here, mainly for illustration purposes. These can be interchanged, if for example, you wanted to create a Revocable Living Trust, but also wanted to make a specific distribution(s). Specific distributions can be made in almost any trust, and are simply a designation of specific property or money that should be distributed to a specific person or persons. To be sure that your property will be distributed in the manner in which you desire, you should decide how you wish the property to be distributed and then consult with an attorney.
With respect to the revocation or amendment provision, there is none here and that is precisely what makes this an irrevocable living trust. Irrevocable means in every case [although there always seems to be an exception in the law] and thus, without incurring a large amount of time and expense, the Trust will likely not be permitted to be amended or revoked. The Trustor needs to completely understand that they may be giving up a huge amount of power under this type of Trust. It cannot be emphasized enough that it is important to consult with an attorney before creating this type of a trust.
Almost every other provision in this Trust has been discussed in the Revocable Living Trust example.