Thinking about estate planning can feel overwhelming. Most people don’t like contemplating the final chapter of their lives. When do I need a plan? What goes into it? Do I need a trust? If so, which type of trust will best suit my desires and the needs of my family?
At the Shakopee law firm of Jaspers, Moriarty & Wetherille, P.A., our experienced estate planning attorneys frequently meet with people who come to us feeling uncertain about where to even begin. Trusts are one of those topics that sound complicated but become much clearer once you understand the basics. We will explain the key differences between revocable and irrevocable trusts, in plain language, so you can feel more confident about the choices you make to secure your family’s future and put your mind at ease.
A person who is creating a trust for themselves is called a settlor or grantor in Minnesota.
What Is a Revocable Trust?
The most popular type of trust is the revocable living trust, which allows the settlor to make changes to the trust during his or her lifetime. Think of it as a living document that grows and adapts alongside you. If your family or asset situation changes, you can update the trust to reflect those changes. That flexibility brings real peace of mind for many families. You are not locked into decisions made years ago when your life looked very different.
A revocable trust is a flexible estate planning tool where the settlor retains the ability to modify or completely revoke the trust at any time during their lifetime, allowing for adjustments as life circumstances or estate planning goals change. Common reasons to revisit a trust include, divorce or remarriage of a settlor or heir, buying or selling real estate, welcoming grandchildren, moving to another state, etc.
Upon the death of the settlor, a revocable trust typically becomes irrevocable, meaning it can no longer be changed. While you are living, you hold the reins. After you are gone, the trust becomes a stable, protected vehicle for passing your assets on to the people you love.
What Is an Irrevocable Trust?
Once established, an irrevocable trust generally cannot be altered or revoked. The settlor transfers assets into the trust, relinquishing control and ownership, and that transfer is permanent, meaning the settlor typically cannot reclaim the assets or change the terms of the trust.
Families often choose this path because of the protections it offers in return. The trade-off between control and protection is at the heart of choosing an irrevocable trust. Whether to create one depends on your family’s circumstances, your assets, and what you most want to protect.
Protecting Your Assets and Your Family’s Future
One of the most important differences between these two trust types involves creditor protection. Under Minnesota law, during the lifetime of the settlor, the property of a revocable trust is subject to claims of the settlor’s creditors. Because you still control the assets in a revocable trust, creditors can still potentially reach them.
Assets in an irrevocable trust are generally protected from creditors and legal judgments against the settlor, except to the extent assets can be distributed to or for the settlor’s benefit. For families concerned about long-term care costs, medical expenses, or other financial vulnerabilities, this protection is important. It is one of the reasons we often see irrevocable trust planning come up in conversations about Medicaid and Medical Assistance planning.
Transfers made to an irrevocable trust too close to a Medical Assistance application can be subject to a lookback review. Early planning, before a health crisis, gives your family far more options. We always encourage families to set up their estate plan well before it is needed in order to avoid potential issues.
Avoiding Probate and Protecting Your Privacy
Both revocable and irrevocable trusts can help your family avoid probate. Probate is the court procedure needed to verify and carry out the terms of a will, and it can be a lengthy process taking many months. An executor, attorney, and court fees must all be paid as part of the process, and heirs do not receive their inheritance until probate is wrapped up.
With a will, probate laws require that an inventory of the estate’s assets be filed with the court, and the will and the inventory are public information. With a revocable living trust, generally only the beneficiaries of the trust will be informed of the nature and the value of the assets. For families who value keeping their financial affairs private, a trust offers something a will simply cannot.
If you own real estate in another state, a revocable living trust might help you avoid a probate proceeding in that state for that property. Managing multiple probate proceedings across state lines can be an added burden for your loved ones at an already difficult time.
Tax Considerations
A revocable living trust, on its own, does not reduce your estate taxes. Because you retain control over the assets, they remain part of your taxable estate.
An irrevocable trust can provide significant tax benefits, including estate tax reductions, depending on its structure. Because you have stepped away from ownership, those assets may no longer count against your estate for tax purposes. Minnesota has its own estate tax structure, and it can apply at lower thresholds than the federal level, which means this planning consideration is relevant for many Minnesota families, not just those with large estates.
Every family’s tax situation is different, and the right trust structure should reflect your specific picture. Your lawyer can help you understand which options may benefit you most.
What Minnesota’s Updated Trust Laws Mean for You
Minnesota recently went through the first major overhaul of the Minnesota Trust Code since it became effective in 2016. The key changes were effective as of August 1, 2025.
Trusts created on or after August 1, 2025, can endure for up to 500 years under Minnesota law, which allows for significant long-term legacy generational planning for Minnesota families. If leaving a lasting legacy for your children, grandchildren, and beyond, you can now structure your plan to accomplish that.
If you have existing documents, existing estate plans should be reviewed to ensure compliance with the new laws and to conform the documents to current wishes. We are happy to walk through your current plan with you to make sure everything still works the way you intend.
Finding the Right Path for Your Family
Deciding whether a revocable or irrevocable trust is right for you depends on your individual circumstances, financial goals, and estate planning objectives. Factors such as the desire for flexibility, tax considerations, and asset protection needs all play a role in this decision.
There is no single right answer, and we would never want you to feel pressured into a choice that does not feel right for your family. What we can offer is a thoughtful, unhurried conversation about where you are, what you are hoping to protect, and what options genuinely fit your life. Families throughout Shakopee and Scott County have trusted Jaspers, Moriarty & Wetherille, P.A., to help them build plans that reflect their values and their wishes. We would be honored to do the same for you.
Contact our skilled trust lawyers to schedule a consultation. We are glad to help you accomplish your goals.