Irrevocable Living Trust
An Irrevocable Living Trust is a type of Trust that cannot be easily altered or terminated once it is created.
WHAT IT IS
Learn the ins and outs of an Irrevocable Living Trust and when to use this type of estate planning tool.
Living Trusts can be very powerful, but when you choose to use an Irrevocable Trust, you do so for very specific reasons. Because Irrevocable Trusts cannot be easily changed, there are some circumstances in which they wouldn’t be appropriate. But if you’re looking for a vehicle that will take effect during your lifetime and can offer you asset protection, this may be a smart option to consider.
Irrevocable Living Trusts can help protect your assets and property from creditors and judgments. They can also help you avoid taxes and might be able to ensure your property is safe if you need government benefits.
If you think you might want to create an Irrevocable Living Trust, it’s important you know all the details before you start.
Benefits of an Irrevocable Living Trust
They’re not for everyone, but there are times that an Irrevocable Living Trust can be a viable Estate Planning Tool. They can offer the following benefits:
Protection of Assets
If your goal is asset protection, an Irrevocable Living Trust can be a great solution. It can offer you protection from creditors and judgments or lawsuits.
Estate Tax Benefit
If you have a very large estate, an Irrevocable Living Trust can work to your advantage. Any asset or property you place inside a Trust won’t add value to your estate, which can be huge in terms of estate taxes.
Keep Government Benefits
Those who rely on government benefits like supplemental security income or Medicare (or if you will one day in the future), your total estate value can actually count against you. It can be complicated, but some government aid will require you to use your own money first. When you put assets and property inside an Irrevocable Living Trust, they’re protected from being included in your total value - which means you could receive aid without having to deplete your personal assets first.
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