Based in Newport, CA, Richard T. Howard is an experienced trust manager with a long career that has enabled him to offer his expertise to a diverse client portfolio. An architectural technology graduate from Memphis State University, Richard T. Howard of Newport, CA, is the owner of CDAMT. In his current role, he provides numerous asset protection advisory services, such as explaining the difference between revocable and irrevocable trusts.

Revocable trusts and irrevocable trust are terms commonly used in trust management. A revocable trust is a trust you can make changes to at any time. As the owner, you have the freedom to modify the terms of the trust, change the beneficiaries, or revoke the entire trust if it no longer meets your needs. To enjoy these benefits, when setting up a revocable trust, you should be the sole trustee, as this enables you move assets in and out of the trust as you wish. A lot of people put a significant portion of their assets in revocable trusts because of the flexibility and control associated with them.

With an irrevocable trust, you surrender ownership and control of your property, meaning you cannot make any changes to the trust. Once the agreements to form the trust have been finalized, you can’t have your properties back, and you cannot be a trustee or manage the assets in the trust. Once the trust is formed, you must step aside permanently. An irrevocable trust becomes revocable if you die, as you’re no longer available to make any changes to the trust. It is important to carefully select assets you put into an irrevocable trust, as you basically give up your entire rights and control. Irrevocable trusts are not subject to estate tax upon death, and relieve beneficiaries from paying any taxes on income generated from assets.