Q: What reason might an individual want an irrevocable v. revocable trust if his total assets are below $3,000,000?
A:
Total asset value isn't the only consideration for creating a revocable or irrevocable trust.
Generally, irrevocable trusts offer greater asset protection and certain tax advantages. Irrevocable trusts are treated like a totally separate and individual entity because the assets are no longer owned or controlled by the individual grantor. So, it's more difficult for for the grantor's creditors to seize those assets. Additionally, income from those assets is not taxable to the individual grantor, it's taxable to the trust.
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