Legal Solutions from Woodlands Estate Planning Attorneys
Creators of irrevocable trusts have limited control over what assets can be placed in the trust. However, the largest benefit of having an irrevocable trust is to achieve a particular goal, such as establishing a trust for children, qualifying for Medicaid benefits and various tax advantages.
Understanding Irrevocable Trusts
All trusts must have a grantor, trustee, and assets placed in the trust. The grantor (aka “settlor”) creates and funds the trust with assets. The trustee manages the assets once they are put in the trust. Although they are distinct roles, the grantor and trustee are often the same person. One of the greatest advantages of an irrevocable trust is that it can offer great protection from future creditors and lawsuits as well as bad marriages.
Here are some additional advantages of irrevocable trusts:
- Provide a great “container” for assets given to children; parents stay in control of the assets as the trustee even after the gifts are made to the trusts
- Assets placed in a irrevocable trust are not included in the estate of the grantor for estate tax purposes
- Can be used to provide assets to a beneficiary with special needs while not disqualifying them for government benefits such as Medicaid
- Irrevocable trusts are a critical component of estate tax reduction planning
To learn more about what types of funds may be vulnerable in an irrevocable trust, it is best that you first consult with our Montgomery County estate planning lawyers. Dossey & Jones PLLC can help you decipher what is the most suitable course of action for your particular circumstances. There are many avenues to take when it comes to estate planning, and we can steer you on the right path for you.
Assisting Clients Since 1972
For more than four decades, our team of Woodlands estate planning attorneys has been providing only the highest-quality legal counsel and advocacy for a variety of estate planning procedures. Our mission is to help minimize risk, protect your wealth, and ensure that your family is well provided for generations to come.
Discuss your case with us during a risk-free, no obligation consultation.