An irrevocable trust is a specific type of trust that you can create. When you make an irrevocable trust, you lose control over the assets that you transfer to the trust. You can’t just change or modify the trust at will, and you can’t end the trust whenever you want to. You also no longer own the assets that you have put into the irrevocable trust — the trust is the owner of the money or property.
The loss of control over your wealth is what makes an irrevocable trust a valuable asset protection tool. However, you may be uncomfortable giving up so much autonomy over how your money and property is managed. You need to think carefully about whether an irrevocable trust is the right estate planning tool for you to use and you should make certain to work with an experienced attorney before creating an irrevocable trust to determine if there are other documents that could suit your purposes of if an irrevocable trust is the tool you need to protect your money and property.
Frank & Kraft can help you to decide if you should create an irrevocable trust and can guide you through the trust creation process so you can make a trust that best protects your wealth. You should give us a call today to find out about trust creation and about the different ways that our firm can help you to keep your wealth safe so you can provide for your loved ones and secure your legacy.
What are the Advantages of an Irrevocable Trust?
Some of the advantages of an irrevocable trust include:
- Protection from creditors: When creditors come after you, it is sometimes possible for them to get a judgement against you and to try to take your assets. If you don’t want your hard-earned money to be at risk of being lost due to creditor claims, transferring wealth to an irrevocable trust might be a good solution.
- Protection from estate tax: If you are going to owe estate tax because you have a larger estate, you may be able to avoid this by creating an irrevocable trust and giving the trust ownership of your assets. It is important to note that while a living trust or revocable trust can allow assets to pass outside of the probate process, assets in an irrevocable trust can still count when determining if you owe estate tax and how much you owe. As a result, it’s beneficial to consider irrevocable trust creation if you want to reduce or avoid a big tax bill after death.
- Accessing means-tested benefits: When you’ve created an irrevocable trust and transferred assets into it, you no longer own or control the money and property so it shouldn’t count as a financial resource for purposes of determining if you are going to be able to become eligible for Medicaid benefits. If you need Medicaid to pay for the costs of your nursing home care, creating an irrevocable trust can be the best approach you have to ensuring you are able to get your care covered without impoverishing yourself. This is important because Medicare won’t cover the costs of nursing home care.
There may also be other benefits to trust creation depending upon the specifics of your personal and family situation. That’s why you should make certain to get individualized advice from an attorney who knows your situation and who can you to identify the tools that you need to keep your hard-earned money and property safe.
Getting Help from a Trust Attorney
A trust attorney at Frank & Kraft will explain the pros and cons of creating an irrevocable trust and will help you to determine if you should make this type of trust so your wealth can be as safe as possible. We can also provide you with comprehensive assistance understanding the trust creation process and creating a legally valid trust document. And, we’ll help you to fund your irrevocable trust as well so you can transfer the right assets that you want to protect into your trust.
To find out more about how our firm can help you with legal issues related to trust creation, join us for a free seminar. You can also give us a call at 317-684-1100 or contact us online at any time for personalized one-on-one help and support with the process of protecting your assets and planning for your future. Call today to get your plans underway.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.