Boca Raton Irrevocable Trust Attorney
What Is an Irrevocable Trust?
Trusts tend to come in two basic flavors: revocable and irrevocable. A trust is deemed “irrevocable” because the creator of the trust (the “grantor”) has relinquished some form of control over the property being transferred to the trust and the terms of the trust are said to be “irrevocable” meaning not subject to change. Not being able to revoke the trust is part of a trade-off that comes with several benefits. These benefits may include the ability for assets being transferred to an irrevocable trust to be moved outside of the grantor’s taxable estate and the ability to protect the assets from the creditors of the grantor and the beneficiaries. These types of trusts can be extremely complex, which is why it is important to consult an experienced Boca Raton irrevocable trust attorney.
The parties to an Irrevocable Trust are:
- The creator of the trust (the grantor or settlor);
- The trustee or successor trustee;
- The beneficiary or beneficiaries; and
- The trust protector (if one is appointed).
What Are the Benefits of an Irrevocable Trust?
Once you have established a trust, the trustee maintains legal title to the property, and the beneficiaries hold equitable title. In many cases, if a trust is “irrevocable,” you cannot undo the effects of the trust to reclaim the property unless you have the consent of the trustee and the beneficiaries. However, there are circumstances in which a settlor can modify an irrevocable trust, although it is still considered irrevocable because a grantor can never do this completely on his or her own. Some of the benefits of using Irrevocable Trusts include the following
- Protecting assets from judgements and creditors.
- Removing taxable assets from the grantor’s estate so that the grantor can take of advantage of estate tax exemptions.
- Removing appreciating assets from the grantor’s estate and allowing the assets to take on a better value so that beneficiaries don’t have to pay so much in taxes
- Gifting a home to children with less tax implication
- Gifting assets while being able to retain the income they generate
- Probate avoidance
There are many different types of irrevocable trusts. Please consult with your Boca Raton irrevocable trust attorney to determine which type of trust best suits your goals. The types of irrevocable trusts often used include:
- Intentionally Defective Grantor Trusts
- Irrevocable Life Insurance Trusts
- Irrevocable Gifting Trusts
- Charitable Remainder Trusts
- Charitable Lead Trusts
- Grantor Retained Trusts
Contact an Experienced Boca Raton Irrevocable Trust Attorney
If you have questions or concerns about an irrevocable trust, the lawyers at Ellis Law Group can assist you. Schedule a consultation today with an experienced Boca Raton irrevocable trust attorney at our firm by calling 561-910-7500 or contacting us online.