Lakewood Ranch: What is an Irrevocable Trust?

Lakewood Ranch: What is an Irrevocable Trust? When you decide to plan your estate, you will be presented with several options. One of these options is an irrevocable trust. What are irrevocable trusts and how can they benefit you and your beneficiaries? This type of trust is one that, once signed, cannot be changed. This means that you need to be sure of what assets are included in the trust and who is designated as the beneficiary. Another type of trust is a revocable trust, which can be changed until you pass away or become mentally incapacitated, at which time, it automatically becomes irrevocable. There are good reasons to choose an irrevocable trust over a revocable trust. One of the most attractive reasons is estate tax reduction. A variety of options exist to set up irrevocable trusts to achieve the maximum estate tax reduction. An experienced estate planner can help you find the best way to do this. A second good reason to use the irrevocable trust option is asset protection. Your assets are protected in an irrevocable trust because you give up complete control of them to the trustee. This may give you pause until you consider that this keeps those assets from being taken into consideration if you are sued and have a judgment against you or creditors seek to put a lien on your property to settle a debt. These reasons can give you the peace of mind you need in knowing that your surviving spouse or children will have what you intended for them to have when you pass. One more reason to use an irrevocable trust is charitable estate planning. You can put assets you wish to go to the charity of your choice in such a trust and know that when the time comes, the charity will receive the assets you wished them to have. Want to learn even more about irrevocable trusts and how they can benefit you? Call 941-365-2253 today and schedule a free consultation.

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