Severna Park 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. This is why you need assistance from one of our experienced Severna Park irrevocable trust attorneys.
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.
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 onlycost $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.
Contact Our Severna Park Irrevocable Trust Attorneys Today
Let the Severna Park 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 Severna Park law offices of Frame & Frame today to get started on creating an irrevocable trust specifically designed to meet your needs.