Episode description
Episode description
There’s often a lot of confusion between the different types of irrevocable trusts, even as more and more people are forming them today.
A trust is a relationship between a trust-maker and a trustee, and there are specific terms that the trustee is expected to follow. As a general rule, a trust can either be revocable or irrevocable.
A revocable trust is one in which the trust can be revoked within the lifetime of the trust-maker. An irrevocable trust is one that cannot be revoked, which means the trust-maker cannot directly take back the assets that they placed in the trust.
In this episode of Repair the Roof, Attorney Ted Gudorf explores the three types of irrevocable trusts: estate tax irrevocable trusts, asset protection trusts, and Medicaid asset protection trusts.
Key Topics:
- What is a “trust”? (0:29)
- Similarities between revocable trusts and irrevocable trusts (2:19)
- Differences between revocable trusts and irrevocable trusts (4:17)
- Grantor trusts (04:43)
- Type 1: Estate tax irrevocable trust (06:37)
- Type 2: Asset protection trust (08:21)
- Type 3: Medicaid asset protection trust (11:32)
- Removing trustees through a trust protector/advisor (15:37)
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