An irrevocable trust is just one of many different avenues available to seniors who are planning their financial futures and considering how to pass their assets on to loved ones. There are dozens of different forms of irrevocable trusts that Attorney Kimberly K. Muenter can help you understand.
What is a Trust?
A basic trust of any form is a legal arrangement that plans for the management, distribution, or ownership of specific property. The grantor of the trust provides the property to a trustee, who is responsible for overseeing the wellbeing of the property until it is given to the final recipient, called the beneficiary.
How is an Irrevocable Trust Valuable?
An irrevocable trust is still a trust, it only means that the terms of the trust cannot be altered by the grantor at any time. Though this sounds risky, it’s a smart idea for someone looking to dramatically reduce estate taxes, protect assets from eager debt collectors, or provide important financial stability to minors, those with special needs, or those who are financially untrustworthy.
What Are the Benefits of an Irrevocable Trust?
There are many perks to establishing an irrevocable trust, both in and out of the tax realm. In terms of taxes, the contents of an irrevocable trust are not taxed upon your death. This means you can provide the beneficiaries of your choosing with the assets you desire while reducing your taxable estate.
Other than tax benefits, an irrevocable trust also provides the grantor with a way to pass assets down to beneficiaries without creditors placing a lien on the assets to bring existing debts current.
How Can an Irrevocable Trust Be Established?
If an irrevocable trust sounds like a financial decision that could benefit you and your family members, contact Attorney Kimberly K. Muenter today. She will work with you to understand your family circumstances, estate planning goals, and tax context in order to guide you to the best irrevocable trust for your situation.