Who Might Benefit from an Irrevocable Trust?
Irrevocable trusts are a versatile and flexible financial tool with uses in lifetime asset protection as well as estate planning.
You might consider an irrevocable trust for your estate-planning needs if:
-you plan to enter a nursing home or other long-term care facility
-you have real estate holdings and need to make provisions for their management
-you are starting early on your estate-planning
This last point is important, as it takes several years to plan and execute a personalized irrevocable trust strategy. With help from Gosselin Law, this process can be made easier and less mystifying.
Read on to learn more about irrevocable trusts and if they might be right for you.
How Does an Irrevocable Trust Work?
In contrast to revocable living trusts, which can be altered at any time by the grantor, once an irrevocable trust is set up it can never be altered. Furthermore, the assets within an irrevocable trust are forever out of the control of the grantor.
It is this permanence and this absolute dissolution of the grantor’s ownership rights over the assets that make planning for an irrevocable trust a several-years-long process. Needing to be so decisive and certain can make an irrevocable trust seem too daunting to use in estate planning, but these trusts offer extensive benefits in return.
What Are the Benefits of an Irrevocable Trust?
Irrevocable trusts are excellent tools for asset protection and for minimizing estate taxes.
Because the assets held in an irrevocable trust no longer belong to the grantor, they are not counted as part of the grantor’s assets in life or estate in death. Doctors and other professionals who face lawsuits often make use of irrevocable trusts to shield their hard-earned assets from legal liability.
When setting one’s affairs in order, irrevocable trusts can protect your real estate assets. By specifying a property manager or other caretaker, you can ensure your rental properties remain profitable even after you have retired or are no longer able to work.
Moreover, because assets held in an irrevocable trust are not considered part of your estate, they are not subject to estate tax. For people with substantial estates, the amount of money saved could be considerable.
Similar to a special needs trust, irrevocable trusts can be used to preserve eligibility for government assistance. For people considering long-term care options, Medicare and Social Security as important sources of income. With an irrevocable trust, they can supplement these income streams to pay for additional medical care without losing eligibility for government programs.
Find Out If An Irrevocable Trust Will Help You
Irrevocable trusts are a lot less daunting with the right partner by your side. Schedule an appointment with one of our experienced attorneys to discuss if an irrevocable trust or other estate-planning tool is right for you. We know our community; we know trusts; we can’t wait to get to know you.