Most of us want to ensure that our spouses and children are financially cared for. This applies to the here and now and as well as when we pass away. One tool that is commonly used to do that is a trust. A trust is a relationship in which a trustee manages the estate of one person for the benefit of others. There are many kinds of trusts and many ways in which a trust can be administered. A type of trust that may be of benefit to you and your loved ones is called an irrevocable trust.
As the name implies, an irrevocable trust cannot be changed, modified, amended or revoked. Such a trust can be created when a person is still alive. A revocable trust will, out of necessity, become irrevocable once the person who set up the trust is deceased. Trusts, wills and estate planning do not need to be complex, especially when the purpose of caring for your loved ones is kept in mind. As an experienced Texas estate planning attorney, I take pride in being able to assist individuals in achieving some sort of peace of mind regarding their future
Reasons to have an Irrevocable Trust
Irrevocable trusts can provide certain asset protection that a revocable trust does not give. In a revocable trust, your assets are still considered yours for income tax purposes. This is not the case in an irrevocable trust. This type of trust can take taxable assets out of your estate, exempting the trust property from estate taxes. Upon your death, your assets will be distributed to those you want without the problems or worries that sometimes accompany this. You may want to have protection for the estate against extravagant or improper spending. You may be concerned that a benefactor is not able to properly manage their financial affairs. An irrevocable trust can be utilized to protect against these situations.
The thought and planning that goes into an irrevocable trust is extremely important. Once it is written, it generally cannot be changed. At times someone may wish to challenge your trust and how we prepare it may determine their success or failure. You can ask Clausell Law Firm, PLLC any questions you would like regarding trusts and what areas of concern are important to you. Our goal is always to prepare the correct legal document that is customized for your needs.