Establishing a comprehensive estate plan is one of the most significant steps you can take to protect your assets and ensure your legacy. For residents of Mississippi, it is essential to understand the difference between revocable and irrevocable trusts in order to effectively manage your wealth. At Gregory D. Keenum PA, our firm has spent nearly 49 years assisting families with navigating these complex legal structures. Founded in 1979, we are built on a foundation of integrity, dedication, and delivering results.

What Is a Revocable Trust?

A revocable trust, also known as a living trust, allows you to maintain control over your assets while you are alive. You can continue to act as the trustee and manage property as you did before establishing the trust. The main advantage of this type of trust is its flexibility; you have the ability to modify or terminate the trust if your circumstances change.

Under Mississippi law, the creator of a revocable trust has the power to change the terms of the agreement. This is stated in the Mississippi Uniform Trust Code, which assumes that a trust is revocable unless otherwise specified. While this provides convenience, assets held in a revocable trust are still included in your taxable estate and may be vulnerable to creditors. Nevertheless, these trusts can be effective in avoiding probate and ensuring that your beneficiaries receive the assets quickly and privately.

The Power of Irrevocable Trusts

Conversely, an irrevocable trust cannot be changed or dissolved without the consent of the beneficiaries after it has been established. When assets are transferred into this type of trust, ownership is transferred to the trustee. This separation offers significant legal benefits, especially in terms of asset protection and tax planning.

Because you no longer own the assets, they are typically protected from lawsuits and creditors. Additionally, these assets are excluded from your taxable estate, potentially reducing your estate tax liability. According to Mississippi Code Section 91-8-603, a trust becomes irrevocable when the terms explicitly state it cannot be changed. While this lack of control may deter some clients, the long-term security offered often outweighs the inflexibility for those with large estates or significant liability concerns.

Key Differences Under Mississippi Statutes

Navigating the complex legal aspects of these trusts requires a thorough understanding of Mississippi Title 91, which regulates wills and estates. This statutory framework determines how trusts are managed, taxed, and resolved in court.

• Control: Revocable trusts provide full control, while irrevocable trust do not.
• Protection: Irrevocable trusts offer greater protection from creditors and court judgements.
• Tax benefits: irrevocable trusts can provide estate taxes benefits that revocs can’t offer.

Mississippi courts strictly interpret the language in trust documents. Any ambiguities can lead to legal disputes, emphasizing the importance of precise drafting. Our team ensures that every clause in the document aligns with current state laws to prevent future conflicts.

Choosing the Right Path for Your Family

Choosing between a revocable and irrevocable trust depends on individual financial circumstances and objectives. There is no one-size-fits-all solution. Some clients opt for a hybrid approach, maintaining a revocable trust for daily assets and creating an irrevocable one for high-value assets like property or life insurance.

At Gregory D. Keenum, PA, we believe in building strong, long-lasting relationships with our clients. Whether you’re dealing with a family emergency, planning for the future, or seeking legal advice for your business, we’re here to support you every step of the way. 

Our founder, Gregory D. Keenum, is dedicated to providing personalized, strategic solutions tailored to your unique needs. We understand that each client has different legal concerns, and we will work hard to advocate for your best interests.

Contact Us Today

Estate planning is not just about distributing assets; it’s also about peace of mind. Our local firm has nearly five decades of experience and is equipped to handle your most sensitive legal matters. Don’t leave your legacy to chance. Contact Gregory D. Keenum, PA today to schedule a consultation. We’re always available to answer any questions or concerns you may have, ensuring you can move forward with confidence.