Revocable vs. Irrevocable Trusts in PA

Revocable and irrevocable trusts solve different problems. Confusing them is the most common mistake in DIY trust planning.

Revocable

Settlor retains full control, can amend or revoke. Assets remain in the settlor's taxable and creditor-reachable estate. Primary benefit: probate avoidance and incapacity continuity.

Irrevocable

Settlor gives up control (varying degrees). Assets are outside the federal taxable estate (with proper structure) and protected from future creditors and Medicaid spend-down (after the 5-year lookback).

Hybrid

A revocable trust at the front end can convert to irrevocable at the settlor's death, locking in protections for the next generation.