Rippy, Stepps & Associates
Put your legal matters in order.Plan now for a more secure future.
Payment Button
View Our Practice Areas

3 Advantages of an irrevocable trust

There are a variety of trusts to choose from when considering which will best suit your family and protect your legacy. One option available to you is an irrevocable trust. Whereas a revocable trust allows you to change the contents and instructions of the trust, you generally cannot change the terms of an irrevocable trust once they are set in place.

But what could possibly be the benefit to this? Turns out, there are a few key advantages of setting up an irrevocable trust.

1. Avoid estate taxes

When you place items into an irrevocable trust, you effectively give up ownership of that asset. Thus, for any property you list in an irrevocable trust, you will not have to pay estate taxes on that property. Especially with high-value property, transferring real estate into an irrevocable trust keeps the IRS from taxing the property after you pass.

2. Protect your assets

Just as placing your property in an irrevocable trust keeps the IRS from taxing it, so too does it keep creditors from liquidating your assets to pay off any debt. If you have a sizable amount of debt, creditors will often sell high-value items in your estate to satisfy that debt. However, creditors cannot touch assets in an irrevocable trust.

3. Avoid probate

One undeniable perk with most trusts is that assets do not have to pass through probate court. This is also true with assets in an irrevocable trust. Instead, your assets will pass directly onto your beneficiaries. This can save your family time and money. You may even help your family avoid tense disputes that can often accompany the drawn-out and stressful process of probate.

Find a way that works for you

Creating an irrevocable trust is just one way to ensure a secure, bright future for your family. With careful guidance and thoughtful insight from an experienced estate planning attorney, you can determine if an irrevocable trust is right for you.

No Comments

Leave a comment
Comment Information
Email Us For A Response