Irrevocable
Trusts
Do All Trusts
Provide Protection From Creditors?
…NO, but Irrevocable Trusts may…
What is the difference between a revocable and
irrevocable trust?
• A revocable
trust (or living trust) is a trust that allows
you to control and manage the assets in your trust while you are alive. You can still buy, sell, or
gift your asset while they are in your trust. This type of trust will allow you to avoid probate
and may be able to limit your family’s estate tax burden. For more on revocable trusts, please
visit http://wfplaw.com/Revocable-Trusts.html
.
• An irrevocable
trust is a vehicle that will still allow you to avoid probate but it also offers
immediate asset protection and estate tax reduction. However, with an irrevocable trust, you must
often give up all control of the assets you place into the trust and rely on your named trustee to
manage them for you.
What are the main advantages of having an
irrevocable trust?
•
Asset Protection. Assets placed into
an irrevocable trust are not considered to be owned by the grantor. Therefore, if you place an
asset into an irrevocable trust, it will be instantly protected from creditors and judgment liens
and may be protected from bankruptcy trustees and divorce as well.
• Avoiding
Probate. Trusts allow your family to avoid probate. Probate is an arduous
process that is costly and time consuming. It could delay the distribution of your assets for
years. Additionally, probate can cost up to 10% of the value of your estate.
• Tax
Advantages. The assets of the trust are not counted as part of your estate, so
the estate taxes are lower or even completely eliminated. In addition, many irrevocable trusts also
reduce your annual income tax burden.
• Lower Court and Attorney
Fees: Distribution through a trust can save you on the attorney and executor’s
fees charged to probate a will.
• Asset Protection for
Beneficiaries. An irrevocable trust can protect your beneficiaries from having
their inheritance taken from them through litigation, bankruptcy, creditors or
divorce.
• Privacy. Irrevocable trusts are private documents and not
subject to public record. Your family secrets and private bequests are not subject to public
scrutiny or the eyes of undesirable claimants.
Will an irrevocable trust benefit me while I am
alive? Yes!
• Creditors cannot
reach an irrevocable trust. Your assets will be protected from lawsuits originating from business,
divorce, or accidents.
• You can pre-select the trustee of your estate to ensure your assets
are utilized and distributed as you desire.
How will an irrevocable trust benefit my
family?
THERE ARE
NO SURPRISES!!!
• An irrevocable trust cannot
be changed, so your family can be assured that your original wishes are complied with after your
death.
THERE IS
NO WAITING
• You family will not have to wait
for the assets to be disbursed.
SECURITY AND PEACE OF
MIND
• Creating an irrevocable trust will give your family peace of mind
that your assets will remain secure and be disbursed properly in a timely manner.
It is important to remember that a trust will be
more beneficial to you and your family if it is executed before you need it. Although some people
establish trusts after they inherit money, the benefit of privacy will be lost if you wait. A
Florida estate planning attorney can advise you on the type of trust that will most benefit you and
your situation. This will give you and your family financial security and peace of
mind.
For more information on successful Florida estate
planning and asset protection techniques, please contact the South Florida law firm of Wild Felice
& Partners, P.A. at 954-944-2855 to schedule your free consultation.
It’s a Wild world. Are you
protected?
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