Planning for later in life care is part of estate planning. An irrevocable trust is a particular vessel that shelters assets from estate taxes, creditors, and government creditors like Medicare reach back programs. As one of the options for creating an estate, there are numerous benefits associated with establishing these trusts.
As your Evanston irrevocable trust attorney, we would be happy to help you explore how this type of trust can protect your future. Contact the Evanston estate planning attorney at Plan Forward Legal today to discuss your needs.
How an Irrevocable Trust Works
When you meet with an irrevocable trust attorney in Evanston, we will discuss all of the legal options for you as well as the implications of choosing this type of trust. Our objective is to make sure you understand all aspects of these trusts, including the limitations they present. Here are a few of the core components of irrevocable trusts you should consider.
- Moves and protects assets. The goal of these trusts is to move ownership of assets from you, the grantor, to the trust, which will ultimately pass to a beneficiary you also name. This enables the trust to take ownership of your assets.
- Decisions are final. Once the trust is in place, the assets within the trust are no longer considered yours. That means you can no longer control those assets or make changes to the trust.
- They reduce the value of your estate. One of the main reasons people use these trusts is that they transfer ownership of the assets to the trust, thereby reducing the estate’s value. This can reduce estate taxes.
Irrevocable trusts are a component of an estate plan, though not the only part of it. When you meet with our Evanston irrevocable trust lawyer, we will review other components that may also benefit you, including wills and other types of trusts. This allows you to make wise decisions about what happens to your assets.
What Can Happen After Your Death with an Irrevocable Trust
At the time of the trust’s creation, the assets move into the trust, and that removes all legal incidents of ownership from you. You no longer have any liability for assets within the trust, nor do you have the right to the income generated from the assets within the trust.
As a result, you also no longer include those assets within your estate value because they are no longer yours to manage. However, the details of the trust allow you to state who receives them and under what conditions.
Why Use an Irrevocable Trust
It can seem a bit worrisome to hand over ownership of your assets to the trust and not have those valuable assets in your name. However, as your Evanston irrevocable trust lawyer will explain, there are several benefits to you in using this method. There are several ways these trusts are utilized to achieve specific estate planning goals.
- Estate tax exemption. When you utilize this type of trust, your assets contained within the trust are no longer subject to estate tax, which means the property transferred to the trust no longer counts towards the gross value of your estate. This may reduce your tax liability immediately.
- Control beneficiaries. With an irrevocable trust, you still set the rules for how the assets will be used and where they will go, and the trustee must follow those rules. This could help you prevent your beneficiaries from misusing those funds.
- Deplete your property estate value. Another common use for an irrevocable trust is to deplete your property to make sure you are eligible for Medicaid or Social Security Income should you need to turn to it. This may help you secure and protect your assets.
- Gift the assets to your children. Many trusts can do this. However, an irrevocable trust allows you to give your assets, like your principal residence, to your heir under more favorable tax rules.
- To secure the needs of a special needs child. Trusts may help protect the benefits that a special needs trust requires. Because the trust owns the assets, they are not counted against the individual.
Our Evanston irrevocable trust attorney provides clarity on the rights and obligations associated with these trusts. We strongly encourage you to schedule a consultation with us to discuss your rights and how this particular type of trust can work for you. We will work with you to set it up as you want to meet your needs. Setting up an irrevocable trust does not have to be complex, especially after our team clarifies the details for you.
How Our Irrevocable Trust Attorney Near Me Can Help You Now
An irrevocable trust attorney in Evanston becomes your advocate. We will work with you in several ways to ensure you are making the best decision for your future needs regarding a living trust. Some of the ways our irrevocable trust lawyer near me can help you include:
- Determining if an irrevocable trust is the best possible route for you to take by comparing all available options
- Aid you in crafting the rules of your trust so that they align with the laws’ limitations, but also with achieving your long-term objectives
- Create a strategy for reducing taxes that is legal and fair to you and to your heirs, while reducing the taxation impact on your estate
- Handle trustee services after your death or incapacitation, if you elect to use your attorney for this.
- Handle disputes and concerns that arise during your life and afterward
Our irrevocable trust lawyer in Evanston does not put pressure on you to make a decision. Rather, we offer guidance and insight so you can decide what is best suited to your situation.
Schedule a Consultation with an Evanston Irrevocable Trust Lawyer Now
Setting up an irrevocable trust is not something you should do without the guidance of an experienced attorney. That is where our team can offer the compassionate trust administration support you need. Discuss your needs and concerns with us, and we will develop a comprehensive and clear strategy to help you achieve your long-term objectives in protecting your family and assets.