Start planning your estate with the help of an experienced, skilled estate planning lawyer Hillsville, VA trusts from The Law Offices of Mark T. Hurt.
An irrevocable trust is a crucial part of tax avoidance planning and asset protection. What was once only used by wealthy individuals, irrevocable trusts offer protection for anyone who is planning out their estate. Unfortunately irrevocable trusts are complex which turns many people away from taking advantage of them. However, this can be a costly mistake. If you are creating an estate plan you should consult an estate planning lawyer in Hillsville, VA for guidance and advice on irrevocable trusts.
Understanding Irrevocable Trusts
An irrevocable trust is a special trust that is created by the grantor. Once created it cannot be revoked. In other words, the grantor cannot take back the assets into his or her name, as in the case of a revocable trust. Once an asset has been put into an irrevocable trust, it belongs to the trust. The core reason irrevocable trusts are so advantageous for people is that when it has been properly drafted, the grantor can put assets into the trust, and once there they cannot be taken by anyone – including creditors.
Setting Up an Irrevocable Trust
An irrevocable trust will need to have a Grantor. This is the person who will create and sign the trust. The grantor must also appoint a Trustee. This person will be responsible for implementing the terms laid out in the trust. The trustee will also manage the assets and beneficiaries of the trust. Due to the intricate legal details of an irrevocable trust, you should not try to set one up without the help of a skilled estate planning lawyer in Hillsville, VA.
Benefits of an Irrevocable Trust
An irrevocable trust is one of the most commonly used tools in estate and asset protection plans. It’s benefits are vast and can include:
- An irrevocable trust can own nearly any asset
- It provides protection from a divorce, legal problems, and creditors
- Assets can stay within the family; thus offering benefits for years to come
- An irrevocable trust can remove the asset from the taxable state
- Death taxes and income taxes can be avoided or shifted
- There is no limit as to how many assets can be placed into the trust
- Creditors generally cannot place a lien on the trust until the assets or transfered to a beneficiary
- A properly crafted trust can still generate cash flow
Types of Irrevocable Trusts
Irrevocable trusts are not just limited to one type. Rather they can be modified to address a variety of circumstances. When you’re interested in creating an irrevocable trust, Hillsville, Virginia estate planning lawyer will likely have you answer a number of questions and discuss your needs to determine what trust best fits your situation. Some examples of irrevocable trusts include:
- Irrevocable life insurance trust
- Spousal lifetime access trust
- Dynasty trust
- Disclaimer trust
- Grantor trust
- Qualified domestic trust
- Education trust
- Bypass trust
- Credit shelter trust
- Marital trust
- Pet trust (*if applicable in your state)
The aforementioned is not exhaustive and can be further explained by a knowledgeable estate planning lawyer in Hillsville, VA from The Law Offices of Mark T. Hurt.
Why You Should Have an Estate Planning Lawyer in Hillsville, VA
Whether you are the Grantor or Trustee of an irrevocable trust, you should have a lawyer on your side to advise and represent you. A lawyer can assist in the prevention of conflict or disputes and minimize the possibility of litigation. Furthermore, a lawyer may reduce the chance of the trustee making an unfortunate mistake resulting in personal liability.
To discuss your irrevocable trust needs with a Hillsville, VA estate planning lawyer call The Law Offices of Mark T. Hurt today.