Business News

3 Things You Should Know About Irrevocable Trusts

 

A trust is an estate planning tool that allows a person to control their assets during their lifetime and make provisions for incapacity and death.

We can help you stay on top of the latest news that affects your everyday life. Subscribe to stay up to date. (To subscribe to our blog ).

One thing you should know about irrevocable trusts is that, unlike revocable or living trusts, irrevocable trusts cannot be changed or amended. They are set in stone.

A second thing that you should know about irrevocable trusts is that they have significant advantages, and also unique disadvantages.

Irrevocable trusts are often used as a person advances in age. Once they know that their circumstances are unlikely to change, we sometimes recommend the use of an irrevocable trust for their estate plan.

Why would someone want an estate plan that they cannot change?

Irrevocable trusts offer many advantages. These include:

  • Reduction of estate tax complications and reduction of taxes,
  • protection against creditors,
  • They can utilize special features to build wealth for future generations,
  • They can prevent loss of assets if long-term care is necessary,
  • and more.

However, there are many drawbacks of an irrevocable trust as well. Some of these include:

  • They cannot be changed, so no revisions will be allowed
  • They are very costly
  • A tax return will need to be added each year.
  • There is some loss of control.

The third thing that you should know about irrevocable trusts is that many of the drawbacks can be remedied by careful drafting.

We help our clients decide if an irrevocable living trust is right for them. If it is we find ways to draft around potential issues and downsides, such as putting in language allowing the grantor to replace the trustee if they are not acting appropriately.

Let us know if you have questions as to whether an irrevocable living trust is right for you or your loved ones.

Contact us today to help you get the right documents in place or to update your current estate plan. We will plan so that you don’t have to worry about your future.

We publish vital information every Wednesday and Friday. To get this important information delivered directly to your mailbox,

Contact us today with all your legal needs!

Recommended Posts

The Best Pet-Friendly Recipes for You and Your Dog

Pet News And Pets In Entertainment Located in Texas, this weblog has topics that include health-related and behavioral points that affect cats, dogs, and horses. It’s informative and encompasses how-to articles, in addition to ‘what you must know’ regarding sure conditions, procedures, or treatments. With all that’s on the market, we launched a search for […]

Wirya 

How to Train Your Rabbit: The Basics

Urgent Need For Pet Adoption Find Dogs & Cats & Extra Air journey has turn out to be certainly one of India’s most typical transportation modes right now. This is primarily as a result of it’s sooner, extra convenient and additionally it is reasonably priced to many as nicely. If you might have a canine, […]

Wirya 

Ferret Care: Tips for Happy and Healthy Ferrets

Mars Unveils The World’s Largest Pet Father Or Mother Study To Better Understand And Serve The Over One Billion Pets And Rising Throughout The Globe The bus driver swerved to keep away from Joseph, and went careening off the highway, throwing 11-year-old Aiden Clark from a window and fatally crushing him because the car rolled. […]

Wirya