Irrevocable Trusts vs. Revocable Trusts: How Do I Choose the Best Option?

Families throughout DuPage County who are thinking seriously about preserving their wealth often find themselves faced with a major decision: should they create a revocable trust, an irrevocable trust, or some combination of the two? Your choice will affect how much control you have over your assets, how those assets pass to your children or other beneficiaries, and whether you will face unnecessary taxation or creditor claims in the future.

The Illinois Trust Code (760 ILCS 3), which governs trusts throughout the state, allows both revocable and irrevocable trusts. Each serves different purposes, and selecting the right type requires thoughtful planning. As of August 2025, both remain valuable options for individuals and families, but the decision should be guided by careful consideration of your long-term goals. 

Whatever those goals may be, reach out to Gierach Law Firm for counsel based on decades of helping high-asset families protect their legacies. Our Naperville, IL estate planning lawyer is reliable, discreet, and takes the needs of every client seriously. 

What Is a Revocable Trust?

A revocable trust, sometimes called a “living trust,” is the more flexible option between the two. While you are alive, you can make changes at any time. You can add or remove beneficiaries, shift assets in or out, or even dissolve the trust completely. Because of this flexibility, revocable trusts are popular among families who want to retain control over their property but avoid the delays of probate court.

Probate is the court-supervised process of validating a will, paying debts, and distributing property. In Illinois, probate can be costly and time-consuming. By placing property into a revocable trust, you allow your chosen successor trustee to distribute it directly to your heirs without court intervention. This can save time and maintain privacy.

However, there are trade-offs. Because you retain control, assets in a revocable trust are still considered part of your estate for tax purposes. They also remain vulnerable to claims from creditors. For many high net worth families, this limits the trust’s ability to protect wealth from outside risks.

What Is an Irrevocable Trust?

An irrevocable trust is much stricter. Once it is created, you generally cannot change it. You surrender ownership and control of the assets that are transferred into the trust. That sounds daunting, but the loss of control brings significant benefits.

First, assets in an irrevocable trust are not part of your taxable estate. This means that when you pass away, they will not be subject to estate taxes. For families with significant wealth, this can save millions of dollars. Second, because you no longer own the assets, creditors usually cannot reach them. This makes irrevocable trusts a powerful tool for protecting wealth from lawsuits, judgments, or business liabilities.

Irrevocable trusts also have important applications in elder law. If you are concerned about long-term care costs, transferring assets into an irrevocable trust can help protect them from being spent down the line on nursing home bills. Under current Medicaid rules, there is a five-year look-back period. After that time has passed, the assets in the trust are not counted when determining eligibility for benefits.

Is a Revocable Trust or an Irrevocable Trust a Better Choice?

The answer depends on your priorities. If you want flexibility and control during your lifetime, a revocable trust may be best. If your primary concern is protecting assets for your heirs, minimizing estate taxes, or shielding wealth from creditors, an irrevocable trust is more effective.

Many families in Naperville use both types of trusts as part of a layered plan. For example, a revocable trust may hold the family home and other personal property, while an irrevocable trust might hold a life insurance policy or investment accounts that need stronger protection.

What to Think About Before You Decide on a Trust in Illinois

When weighing your options, consider the following factors:

• Control vs. protection: A revocable trust offers control, while an irrevocable trust offers protection.
• Tax planning: Irrevocable trusts can remove assets from your taxable estate.
• Long-term care planning: Irrevocable trusts may protect assets if nursing home care becomes necessary.
• Privacy and efficiency: Both trusts can help avoid probate, but revocable trusts are easier to adjust during your lifetime.

These are not abstract questions. They directly affect how your wealth will be preserved and how your family will experience life after you are gone.

Real-Life Examples of Revocable vs. Irrevocable Trusts

Consider the case of a Naperville couple in their early 40s, both professionals with growing careers and two young children. They created a revocable trust because their financial picture was still evolving. They had plans to purchase a second property in Michigan, expected potential changes in income, and wanted the ability to adjust beneficiaries if they decided to help fund their children’s college expenses. Flexibility mattered more than immediate tax savings, and the revocable trust allowed them to keep control of their assets while ensuring their family would avoid the delays and expense of probate court if something unexpected happened.

By contrast, a retired DuPage County business owner in his late 60s with several commercial properties and a portfolio worth over $8 million chose an irrevocable trust. After selling one of his companies, he wanted to remove significant assets from his taxable estate to protect them from estate tax exposure. He also worried about potential lawsuits tied to old business dealings. Placing investment properties into an irrevocable trust both shielded them from creditor claims and ensured that rental income would pass to his grandchildren without creating unnecessary tax burdens for his heirs.

Make Important Estate Planning Decisions with the Guidance of a Naperville, IL Wills and Trusts Lawyer

While it may be tempting to download a form online and try to create a trust on your own, doing so can create serious risks. Illinois law is complex, and improperly drafted trusts may not provide the protections you expect. Worse, mistakes may not be discovered until after your death, when your family is left to deal with the consequences.

Professional guidance ensures that your trust works the way it is intended. It also ensures that your estate plan will evolve with your needs, since many families benefit from revisiting their plans after major life changes such as marriage, divorce, or the sale of a business.

If you are weighing the choice between a revocable trust and an irrevocable trust, now is the time to seek experienced advice. A skilled Naperville estate planning attorney with over 30 years of experience can help you evaluate your goals and design a plan that truly protects your family and your legacy. Call Gierach Law Firm at 630-756-1160 today to schedule a confidential consultation and begin building a trust structure that suits your needs.