Boca Raton Irrevocable Trusts Lawyer
Irrevocable Trusts are one of the best and most valuable estate planning tools available. Using an irrevocable Trust, the settlor, or the person who created the Trust, can manage their assets, protect their assets from future creditors, and help their loved ones avoid probate. For those who are subject to the federal income tax, an irrevocable Trust can also help reduce estate taxes. Below, our Boca Raton irrevocable trusts lawyer explains more about this important estate planning tool.
What Is the Difference Between a Revocable and Irrevocable Trust?
There are many ways revocable Trusts and irrevocable Trusts differ. One of the main differences is that while a revocable Trust can be easily modified or changed, doing so is much more difficult with an irrevocable Trust.
Contrary to what many people think, it is not impossible to change an irrevocable Trust. This misconception is likely due to the fact that historically, it was much harder to change the terms within a Trust. Today, it is not as difficult, but the Trust must be written correctly. Once an irrevocable Trust is created by the settlor, any assets contained within the Trust are owned by the Trust. The settlor, as well as the beneficiaries, can only destroy or change the Trust according to its terms.
Benefits of an Irrevocable Trust
While it is more difficult to modify an irrevocable trust, they still hold many benefits. As with revocable trusts, irrevocable trusts can be used to avoid the probate process. After a person passes away, the court will begin the probate process. This is a very formal process that administers the deceased’s estate, and it can take up to 12 months. The court will also appoint a personal representative, and this individual must follow very specific guidelines. An irrevocable trust can avoid probate and allow the trustee, the administrator of the trust, to distribute the assets quickly and efficiently.
Another main benefit of irrevocable trusts is that they allow settlors to protect certain assets from creditors. Due to the spendthrift clause included in irrevocable trusts, beneficiaries cannot transfer their interests in the trust, even if they wish to. As such, a creditor cannot force a beneficiary to use their share of the trust to repay debts. Beneficiaries also cannot sell their share of the trust to a third party.
Over time, an irrevocable trust can also exempt certain assets from Medicaid. However, to realize this benefit, the assets must be transferred to the trust 60 months or more before the Medicaid application is filed.
Our Irrevocable Trusts Lawyer in Boca Raton Can Help Protect Your Assets
You have worked your whole life to accumulate assets and you want to make sure they are protected now and in the future. At SAMUELS WOOD PLLC, our Boca Raton irrevocable trusts lawyer can make sure your entire estate, and your legacy, have the necessary protection. Call us now at 561-864-3371 or contact us online to schedule a consultation and learn more about how we can help.
