Estate Planning and ProbateRevocable and Irrevocable Trust
Revocable and Irrevocable Trust
In addition to assisting clients with their Last Will & Testaments, we also assist individuals and families in creating both revocable and irrevocable trusts. Trusts are separately created legal vessels that can hold assets, as opposed to the assets being held in an individual’s name. Trusts can be set up to allow persons to access property and income during their lifetime, while also protecting assets during life and after death. Trusts also provide several benefits that wills do not. Having your assets held in trust can help avoid adverse tax consequences (both during your life and after death), protect your assets from creditors, and ensure certain assets stay within your family and/or go to your desired beneficiaries. Additionally, having your assets put into a trust can also help avoid the probate process altogether, which provides an additional layer of privacy and clarity for the families of the deceased.
Trust can be both revocable and irrevocable depending on the needs and objectives of the client. Revocable trusts are created by a “grantor” (who also generally serves as trustee”) to hold the property of individuals or couples during their lifetime. Because these trusts are revocable, they can be amended, dissolved, or otherwise altered by the grantor if needed. Although revocable trusts do not provide equal asset protection to irrevocable trusts, they do often allow families to avoid probate and greatly reduce the costs of administration upon the death of the grantor. Couples (co-grantors) can also set up revocable trust to convert into special sub-trusts and/or irrevocable trusts upon the death of the first grantor. This also allows for the grantors to live off the trust assets during their lifetime, but also ensures that the assets avoid probate and continue to benefit the surviving grantor in the most necessary and cost-effective manner possible.
In the alternative, irrevocable trusts, once formed, are unable to be amended by the grantor. Irrevocable trusts hold and own assets until the asset is depleted or no longer in existence. Irrevocable trusts have less flexibility but do provide invaluable creditor protection, tax protection, and asset preservation in ways that a revocable trust cannot.
Ultimately, both instruments are incredibly effective at ensuring your assets are best protected, that your assets remain private, and that you do not face adverse tax consequences or costly administrative costs upon the death of the grantor. If you have questions or are interested in setting up a trust, please contact Fidelis Law.
Contact a caring attorney
Our firm strongly recommends legally establishing the desires of your family in advance with a comprehensive estate plan, which can include identifying a guardian for children, creating an advanced healthcare plan, and appointing a healthcare agent. However, if the need should arise to seek court appointment of a guardian or conservator, we can help. We will handle your plan with the same care that we handle our own plans. Please call our office at 615-370-3010 or send us an email to begin the conversation with us.