Are Irrevocable Trusts Preferred?

(AEP does not offer Irrevocable Trusts)

Irrevocable trusts are rarely needed for most people, but can be advantageous in specific states with favorable trust laws, such as Nevada, South Dakota, Alaska, or Wyoming. These states offer benefits like perpetual trust durations, HOWEVER this only applies/appeals to a small fraction—roughly 0.1%—of the population with complex estate planning needs. For most, the benefits don’t outweigh the complexity, as revocable trusts typically suffice for flexibility and control. Irrevocable trusts are more rigid, limiting changes once established, and are often overkill for standard estate planning. Forum shopping for favorable state laws is generally unnecessary and beyond the scope of typical trust planning, making revocable trusts a more practical choice for most families.