When you transfer your assets into an irrevocable trust, you give up the unlimited control over them. The trust becomes the new owner, and your now former assets are titled or registered in its name. Since the assets are no longer yours, they have no bearing on your wealth or the value of your estate.
Generally, the purpose of including an irrevocable trust in your estate plan is to remove the assets from your taxable estate, isolate the appreciation of assets outside the estate, and protect certain assets from your creditor claims, while maintaining the ability to control income taxation on the income of the trust property.
We can help you to enhance your estate plan by creating:
- Special Needs Trusts
- Irrevocable Life Insurance Trusts
- Intentionally Defective Grantor Trusts
- Gifting Trusts
- Inheritor’s Trusts
- Charitable Trusts
- Domestic Asset Protection Trusts
- Other lesser known irrevocable trust structures
Although irrevocable trusts are great devices to structure gifts to your beneficiaries, transfer economic benefit without surrendering all control, and provide for asset protection, they involve complex legal strategies, oftentimes causing immediate tax consequences, and should never be attempted without assistance of an experienced attorney.