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What role does an irrevocable trust have in an estate plan?

On Behalf of | May 13, 2024 | Firm News

One of the primary purposes of an estate plan is to dictate who gets what when you die. There are several tools available to do this, so you must understand the options that you have. 

The irrevocable trust is one of those tools. There are a few very specific points to remember about this estate planning option. 

Inability to change terms

One of the most important things to remember about an irrevocable trust is that once the terms are set, you can’t change them unless you have the approval of the court or the beneficiaries. Once you fund the trust, the assets move to the trustee’s control, which opens up an important protection. 

Protection from creditors

Protection from your creditors is one of the biggest benefits of an irrevocable trust, especially if you have a career that’s at a high risk of a lawsuit. The protection from creditors means that you’ll be able to pass the assets in the estate to your beneficiaries without them being diluted by money you owe.

Privacy

An irrevocable trust also provides privacy for your beneficiaries. The trust doesn’t have to go through probate, so the terms of it can be kept private. This is often helpful for those who would rather continue living life without having to worry about people trying to take advantage of them simply because they have an inheritance. 

Ultimately, having a comprehensive estate plan protects you and your loved ones. Being able to relay your wishes in a legally binding manner is critical. It may be easier to do this if you have someone on your side who’s familiar with these matters. 

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