Creating a trust is one of the most powerful steps you can take to protect your family, your assets, and your legacy. But when you begin researching trusts, you’ll quickly find there are many types — and the two most common are revocable and irrevocable trusts. Understanding the difference between them is critical. Each one serves a different purpose and has unique benefits and limitations, especially when it comes to control, taxation, and asset protection. 

At McGowan Law Firm, we help families across Ohio make confident decisions about their estate plans. Here's a clear explanation of revocable vs. irrevocable trusts — and how to decide which one may be the best fit for your situation.

What Is a Revocable Trust?

A revocable trust, sometimes called a “living trust,” is a legal arrangement where you (the grantor) place assets into a trust while retaining full control during your lifetime. The trust is called “revocable” because you can change or cancel it at any time, as long as you are mentally competent. With a revocable trust, you typically serve as the:

• Grantor – the person who creates the trust
• Trustee – the person who manages the trust assets (usually yourself)
• Beneficiary – the person who receives the trust benefits during your life (again, usually yourself)

When you pass away or become incapacitated, the successor trustee you’ve named takes over management and distributes the assets according to your instructions.

Benefits of a Revocable Trust

Revocable trusts offer several key advantages for families in Ohio:

• Avoids probate – Trust assets can be passed to beneficiaries without going through the court system, saving time and costs.
• Maintains privacy – Unlike wills, trusts are not public documents. Your financial affairs remain confidential.
• Flexible and easy to update – You can change terms, add or remove assets, or dissolve the trust entirely as your situation evolves.
• Helps with incapacity planning – If you become incapacitated, your successor trustee can manage your assets without court intervention.

However, a revocable trust does not provide asset protection from creditors, lawsuits, or long-term care costs. Because you retain control over the assets, they are still considered part of your personal estate.

What Is an Irrevocable Trust?

An irrevocable trust is a more permanent structure. Once you transfer assets into it, you generally cannot modify the trust or take the assets back without the consent of all beneficiaries (and in some cases, a court order). Unlike a revocable trust, you typically name someone else to serve as trustee, and you relinquish legal ownership of the assets placed in the trust. This lack of control may seem like a drawback, but it’s precisely what makes irrevocable trusts such a valuable tool for asset protection and tax planning.

Benefits of an Irrevocable Trust

An irrevocable trust can offer strong legal and financial protections when used strategically:

• Asset protection – Because you no longer own the assets, they are often shielded from creditors, lawsuits, and Medicaid spend-down requirements.
• Tax advantages – Certain irrevocable trusts can help reduce estate taxes or income taxes for beneficiaries.
• Special needs planning – You can use an irrevocable trust to provide for a loved one with disabilities without affecting their government benefits.
• Charitable giving – Charitable trusts can support causes you care about while also creating tax benefits.

Because the trust cannot be changed easily, it’s essential to work with an experienced attorney who can structure it correctly from the start.

Key Differences at a Glance

Here’s a quick comparison of the most important differences between revocable and irrevocable trusts:

Which Trust Is Right for You and Your Family?

The answer depends on your personal goals, your assets, and the needs of your beneficiaries. Here are a few examples of how we guide clients at McGowan Law Firm:

• If your primary goal is to avoid probate and maintain privacy — and you want to stay in control — a revocable trust is likely the best option.
• If you’re concerned about long-term care costs, Medicaid eligibility, or shielding assets from creditors, you may benefit from an irrevocable trust.
• If you have a child with special needs, we may recommend a special needs trust to ensure their future is secure without jeopardizing benefits.
• If you're planning charitable giving or estate tax reduction, certain irrevocable trusts can be used as advanced planning tools.

Trusts are highly customizable — but that also means choosing the right type and structure requires a clear understanding of both your financial picture and your legal goals.

Why Work with a Trust Attorney in Ohio?

While online templates and DIY kits exist, a trust that’s not set up correctly can cause major problems down the line, including unintended taxes, beneficiary disputes, and assets getting stuck in probate. At McGowan Law Firm, we provide experienced legal guidance tailored to your family’s specific situation. Our services include:

• Helping you decide which type of trust fits your goals
• Drafting custom trust documents that meet Ohio law
• Coordinating your trust with other estate planning tools like wills, powers of attorney, and health care directives
• Advising you on how to fund your trust so it works as intended

Our trust attorneys also assist with trust administration and litigation, giving you peace of mind that your legacy is protected now and in the future.

Let’s Build the Right Trust for Your Family

No two families are alike and no two trusts should be either. Whether you’re just starting to plan your estate or need help updating an existing trust, McGowan Law Firm is here to help.

Contact us today to schedule a consultation and get clear answers about the best trust options for your family’s future.