Advantages of an Irrevocable Trust

 Posted on December 07, 2021 in Estate Planning and Probate

The idea of creating a trust that you cannot later revoke or amend can be frightening to some people. Initially, very few are willing to place any assets into an irrevocable trust out of fear that they will not be able to change their mind or get their property back. There are, however, certain advantages to irrevocable trusts. Whether an irrevocable trust makes sense as part of your overall comprehensive estate plan will depend on your individual goals and needs. In some situations, irrevocable trusts can save you - and your future beneficiaries - substantial money. It is best to work with a qualified estate planning attorney to determine what types of trusts or other testamentary instruments make sense for you. 

What are the Financial and Legal Advantages of an Irrevocable Trust?

Irrevocable trusts may not be right for every estate plan, but they can be invaluable tools when used correctly. Whether this type of trust may work for you will depend on your unique circumstances. 

Advantages of an irrevocable trust in Texas can include: 

• Public benefits - A skilled attorney can craft an irrevocable trust in a way that is designed to provide for a person’s supplemental needs without defeating their eligibility for Medicaid or other government benefits. If preserving benefit eligibility is an important goal for you, you will want to start building this plan well in advance. The law in this area can be complex. 

• Tax advantages - Especially for high-value estates, irrevocable trusts can lead to significant tax savings. Assets contained in an irrevocable trust at the time of your death are not counted as part of your estate for federal estate tax purposes. 

• Asset protection - Creditors cannot compel you to turn over any monies placed in an irrevocable trust. You no longer own or control those assets, so neither can your creditors. This may be very helpful if you or your beneficiaries work in a field such as medicine, where being sued is always a risk. 

If you identify with any of these goals, an irrevocable trust may fit well into your comprehensive estate plan. Due to its permanent and inflexible nature, it is understandable to have some trepidations about creating this type of trust. Opening an irrevocable trust should only be done under the guidance of a skilled estate planning attorney who is familiar with your personal goals and circumstances. 

Call a Texas Estate Planning Attorney

If you would like to learn more about how an irrevocable trust could work for you, call us at 210-535-0870 to schedule a free consultation. Geoff Mayfield, Attorney at Law is experienced at creating comprehensive estate plans tailored to each clients’ needs. Our San Antonio estate planning lawyers use a variety of legal tools to design the perfect plan for you and your beneficiaries. 

Source: 

https://www.bankoftexas.com/resources/articles/private/trust-basics