Irrevocable Trusts; Can you Trust them?
In order to learn more about an irrevocable trust, you must first know what a trust is. Picture having a treasure chest that you want to put all of your important property in to save after you pass. The treasure chest would be the trust, and you, the person who put the property into the chest, is the grantor of trust. Of course, you will want to make sure your property stays safe in the treasure chest, so you will have someone oversee that property while it is in the chest, they are called the trustee. The trustee will watch over the property until the beneficiary, or the person who will receive the benefits of the property in your treasure chest, is able to obtain the property.
Irrevocable Trusts
To put it simply, an irrevocable trust, is one where when the grantor puts their property into the chest, it essentially becomes the beneficiary’s and the grantor cannot remove or revise the property. To a grantor of trust, this type of trust may seem unattractive. However, there are many benefits to having an irrevocable trust, such as:
- Minimalize estate taxes by removing ‘incidents of ownership’
- Provide for underage family members
- Protect assets from misuse by beneficiaries
- Gifting or removing assets from your estate, while still receiving the income from said assets
It is important to remember as the grantor that there is no monetary limit to how much you can put into your trust. However, whatever assets you put into the trust you cannot take out. You may not benefit from the assets unless they are included in your estate for tax purposes.
You can Trust Us
If you believe you and your loved ones could benefit from an irrevocable trust, the experts at BCN Law firm can help you. Our attorneys will help you devise a trust plan that will work with you, your family, and your unique situation. If you have questions, or would like to speak with one of our attorneys, call us today at (352) 775-4739.
