The Benefits of an Irrevocable Trust
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May 21, 2014The Benefits of an Irrevocable Trust
Planning for the future is an important part of owning a business or other personal property. If you are planning to leave someone specific property, money or other assets, it might be beneficial for you and your trust beneficiary to set up an Irrevocable Trust. There are a number of benefits to using this type of trust over a Revocable Trust option.
Estate Taxes. One of the biggest benefits for a person or business to set up an Irrevocable Trust is the impact it has on taxes. Specifically, an Irrevocable Trust removes the burden of estate taxes on your family when you die. Your attorney at Mile High Estate Planning can help you determine whether an Irrevocable Trust would be of a benefit to you for tax planning purposes.
Protecting Your Money. Once an Irrevocable Trust is set up, the grantor of the Trust is no longer considered the owner of any assets within the Trust. This can be beneficial for a variety of reasons, but the main reason is that if the grantor has legal or financial trouble, the Trust cannot be included as part of their propert, protecting it from creditors.Making it Easier to Give. If the money, property or other assets you are setting aside in an Irrevocable Trust is to be gifted to a family member or charity, sometimes it is easier to put it in this type of Trust first. An Irrevocable Trust can easily be gifted to another person or institution once it is set up, and it can be gifted without the incident of death.It is important to understand the difference between Revocable Trusts and Irrevocable Trusts to make an informed decision on which type of Trust works best for your personal situation. Both have great benefits, depending on what you are including in the Trust and how much control you want to have over the the Trust.
Blake Harris
S. Blake Harris is the Managing Attorney at Mile High Estate Planning where he assists clients with Wills and Trusts, Asset Protection, and Probate. Blake has extensive knowledge and experience helping families plan for and manage the transfer of their assets.
Blake has a degree in Finance from the University of Florida and a Juris Doctorate from the University of Florida College of Law, a top tier law school. While in law school, he worked in the investment banking industry in New York City.
