There are two main forms of Trusts: Revocable and Irrevocable. A Revocable Trust allows a person to act as their own Trustee, you are still in total control. An Irrevocable Trust requires a Trustee to be someone other than you or your spouse to act as a Trustee.
People creating and using an Irrevocable Trust continue to control who their Trustee is and what their Trustee can do. Further, the person creating the Trust can name new Trustees and Beneficiaries.
Medicaid protection is the most common reason a Irrevocable Trust is used. For the most part, individuals, like yourself, turn to an Estate Planning Attorney to draft one to minimize your exposure to Nursing Home expenses and Medicaid. When we prepare an Irrevocable Trust, it can protect your assets from the costs of Nursing Home care and possibly other creditors.
A few of the benefits of an irrevocable trust include:
- Insulating assets from Nursing Home care/Medicaid
- Planning for charitable gifts
- Reducing Estate Taxes
- Controlling gifts to beneficiaries
- Planning for special needs
- Children/Grandchildren with drug abuse issues
- Limiting creditor's access
Can You Add Assets to an Irrevocable Trust?
Yes, assets can be added to an irrevocable trust. Generally speaking, assets that are added to an irrevocable trust are legally owned by the trust itself, not the grantor (person creating the trust). This means that the grantor can no longer make changes to those assets, such as selling or transferring them. Furthermore, assets that are put in an irrevocable trust may be subject to certain taxes and fees.
Therefore, it is important to consult a qualified attorney before adding any assets to an irrevocable trust. Doing so will help ensure that all of the necessary paperwork is properly completed and that the trust is adhering to all applicable laws.
Additionally, it will help protect the grantor from any potential legal issues that may arise in the future. By taking these steps, you can rest assured that your assets are being handled according to the terms of the trust agreement.
Trust a Local Firm with Experience
Are you looking for a knowledgeable Hudson Valley Attorney to prepare your Irrevocable Trust? Our firm has 30 years of experience and we are highly skilled in all areas of Estate Planning. We are prepared to assist you in preparing an Irrevocable Trust and we look forward to helping you.
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