Maryland Irrevocable Trust Attorney
A trust can be a powerful tool for an estate, and choosing the correct trust for your needs can be of great benefit to your heirs. Unlike a will, the assets within a trust do not go through probate, meaning that they can be delivered to the beneficiaries much more quickly, and without the cost of probate. While establishing a trust may seem straightforward, deciding which type of trust you need and setting that trust up is more complicated. Our experienced Maryland irrevocable trust attorneys can assist you with your estate planing needs.
Irrevocable Trust Vs. Revocable Trust
The name says it all when it comes to a revocable versus irrevocable trust. A revocable trust can be modified, whereas an irrevocable trust is essentially set in stone because the person who set up the trust no longer has access to the assets within the irrevocable trust. The trust is controlled by an appointed trustee for the beneficiary or beneficiaries. The only way to regain control, which is complicated and rare, is to terminate the trustee and gain approval from the beneficiaries. That said, if you need to have access or the desire to control the assets within the trust during your lifetime, an irrevocable trust is not for you. If, however, these two points are unimportant, you may greatly benefit from an irrevocable trust and what benefits it has to offer.
Trusts can be expensive to create, and they are not appropriate for everyone. In some circumstances, it may be better to work with a attorney on creating a will through which you can ensure that your assets are distributed according to your wishes. If a trust is a good option for your situation, then you will first need to determine whether you want to establish a revocable or an irrevocable trust. Generally speaking, the answer to that inquiry often depends upon how you respond to this question: do you need or want control over your assets and your property during your lifetime?
A revocable trust does exactly what its name suggests. In brief, it allows you to revoke, or change, the terms you have set up for the trust as long as the law says you are still competent and can make such decisions. An irrevocable trust, differently, does not allow the creator to revoke or revise terms of the trust. Instead, that power is given to a trustee. In most cases, the only way in which the creator of an irrevocable trust can amend or modify terms of the trust is by going through a number of steps that typically involving firing the trustee and gaining approval from the beneficiaries. Based on these differences, it might sound like a revocable trust is always better. Yet there are reasons that an irrevocable trust might be the right choice for you.
What Does an Irrevocable Trust Accomplish?
The main benefit of an irrevocable trust, for very well-off individuals, is the tax advantage. By setting aside assets in an irrevocable trust, you are essentially giving away that money, which can no longer count towards your taxable estate. But, irrevocable trusts are not only for the wealthy. Other benefits include the following:
- Creating asset protection in case of becoming liable for another’s damages or if creditors come knocking. Assets within an irrevocable trust cannot be touched by another party when they come after you, because you no longer control or own those assets;
- Long-term care planning. Most people need Medicaid to pay for their nursing home care, and you may not be eligible if you have a large sum of money in your bank account or retirement portfolio. And, if you do not have your assets set aside in a trust, you may end up spending every last dollar of your savings on this type of intensive and costly care just because you did not qualify;
- Caring for a disabled loved one is expensive and stressful. It may only cost $234,000 to raise a child to 18, according to the USDA, but to raise a special needs child it can cost millions. Providing for them during their youth and afterwards is a monumental task. An irrevocable trust can bring peace of mind that your loved one will have the financial resources at their disposal when you are gone, and a trustee to manage these assets for them in their best interest.
Maryland Estate Planning Attorney Assisting Clients with Irrevocable Trusts
Maryland residents who are starting to think about estate planning and providing for their beneficiaries often want to learn more about trusts. A trust is a powerful legal entity that can allow you to ensure that your loved ones receive the assets you intend and that they are taken care of in the event of your death. Trusts also allow individuals to ensure that beneficiaries receive assets smoothly and without making knowledge of those assets public. To be sure, by creating a trust, you can avoid probate.
Deciding to establish a trust can be the easy part. Once you know that you want to work with an experienced estate planning attorney, you will need to decide what kind of trust you want to establish in order to meet your needs. Should you create a revocable or an irrevocable trust? A Maryland irrevocable trust attorney can assist you. Do not hesitate to reach out to the advocates at Frame & Frame to learn more about how we can help with your estate planning.
Benefits of an Irrevocable Trust
A Maryland irrevocable trusts attorney can assess your particular situation and help you to decide what kind of trust fits your need. In general, however, the following are some benefits associated with an irrevocable trust:
- Asset protection (for example, if there is ever a judgment against you, the assets in the irrevocable trust cannot be taken from you to pay a judgment);
- Limits to estate taxes (when you have assets in an irrevocable trust, those assets are not included in the value of your estate when it is time to determine an estate tax); and
- Medicaid planning (assets in an irrevocable trust, depending upon when it is creating, may not be taken into account when the government determines whether you are eligible for Medicaid benefits for nursing home care).
Contact an Experienced Maryland Irrevocable Trust Attorney
Let the Maryland irrevocable trust attorneys with Frame & Frame help you with this important decision by reaching out to one of our lawyers today. We urge you to contact the Maryland law offices of Frame & Frame today to get started on creating an irrevocable trust specifically designed to meet your needs.