Revocable vs. irrevocable.
| Revocable trust | Irrevocable trust | |
|---|---|---|
| Control | You control the property | A trustee controls it under fixed terms |
| Changes | Change or revoke anytime | Generally only with beneficiary consent or court approval |
| Your creditors | Can reach the property | Generally can't, if you're not a beneficiary |
| Medicaid | Counts as your asset | May not count, after the five-year look-back |
| Estate tax | Included in your estate | Can be kept out of your estate when properly designed |
| Income tax | Reported on your return | Reported by you or by the trust, depending on design |
Why people use one.
Medicaid & long-term care
Protecting a home or savings while keeping Medicaid eligibility possible. Learn more →
Life insurance
Owning a policy so proceeds are controlled and outside your estate. Learn more →
Charitable giving
Lifetime income with the remainder to charity. Learn more →
Protecting beneficiaries
Spendthrift terms that guard against a beneficiary's creditors, divorce, or poor decisions.
Special needs
Providing for a loved one without disrupting SSI or Medicaid. Learn more →
Business & land
Keeping a family business, ranch, or property together across generations.
Texas and New Mexico don't recognize self-settled asset protection trusts: if you create a trust and remain a beneficiary, your creditors can generally reach what you could receive. Irrevocable trusts protect best when the benefit goes to someone else, and transfers made to avoid existing creditors can be undone.
Can it ever change?
Sometimes. Both states allow an irrevocable trust to be modified or ended in limited circumstances — for example, with the beneficiaries' consent or with court approval when circumstances change. A trust protector clause can also build in flexibility from the start. Still, plan as if the terms are permanent.
Pricing.
Trusts are quoted after a consultation, because the right design depends on your family, your property, and your goals. The documents that usually accompany a trust are flat-fee:
Texas
New Mexico
Part 1 of the NM Advance Health-Care Directive$150
Part 2 of the NM Advance Health-Care Directive$100
Flat fees are per person and cover preparation of each document. The first hour of an estate planning consultation is free; if a consultation runs longer than one hour and you don't purchase an estate planning package, additional time is $300 per hour, prorated to the nearest quarter hour. Court filing and county recording fees, if any, are separate. Prices effective through December 31, 2027.
Common questions.
Can I be the trustee of my own irrevocable trust?+
Will an irrevocable trust protect me from a lawsuit?+
Does an irrevocable trust file its own tax return?+
Can I change my mind later?+
Texas estate planning services are provided by Jeff Barnett, Of Counsel (Texas Practice), of Barnett & Leuty, PC, Austin, Texas, licensed in Texas. New Mexico estate planning services are provided by Shawn Barnett, Managing Attorney, licensed in New Mexico. This page provides general information, not legal advice; reading it does not create an attorney-client relationship.