Posts Tagged Irrevocable Trust

The Benefits of an Irrevocable Living Trust

The Benefits of an Irrevocable Living Trust

Irrevocable Living Trusts, when properly designed and implemented, can provide an almost unsurpassed level of asset protection from the high cost of long-term care. And, like Revocable Living Trusts, they spare your family the delays, frustration and expenses of the probate process. Other reasons to utilize an Irrevocable Living Trust include: Tax minimization Avoiding the risks of placing assets in the name of your children Protecting assets against predators, creditors and lawsuits While many different types of Irrevocable Living Trusts are available, in essence all of them re-title your assets. Assets placed in an Irrevocable Living Trust can include a business, cash, investments, life insurance policies, and more. Why is an Irrevocable Living Trust better than a Revocable Living Trust at protecting assets against the cost of long-term care? Under current Medicaid laws, assets in a Revocable Living Trust are not fully protected. Why? Assets in a Revocable Living Trust

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Estate Planning Basics: An Introduction to Trusts, Continued

Estate Planning Basics: An Introduction to Trusts, Continued

Last time we discussed some of the terminology associated with trusts. Now let’s look at how revocable trusts differ from irrevocable trusts and the benefits of having a trust. Revocable versus irrevocable trusts A revocable trust is a trust that can be altered by the grantor during his or her lifetime. An irrevocable trust, on the other hand, is a trust that cannot be changed by the grantor (except under extraordinary circumstances). In the case of irrevocable trusts, the grantor typically foregoes total control of the property and must obey all trust rules and guidelines. Furthermore, a trust can be revocable during the grantor’s lifetime and then become irrevocable upon the grantor’s death. When most people use the word “trust” in the context of estate planning, a revocable living trust is the one they have in mind. A revocable living trust allows you to maintain complete control over your assets

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