Orange County, Los Angeles County, Riverside County, San Bernardino County and San Diego County Irrevocable Trust Attorneys
When you hear about someone forming a trust, they are likely referring to the most common type, which is a revocable living trust. However, some people with complex estate planning needs might need more complex legal tools. Irrevocable trusts are rarer, though they accomplish specific important goals regarding property and beneficiaries. An experienced California irrevocable trust lawyer can assess whether this type of estate planning instrument is right for your situation.
What is an Irrevocable Trust?
An irrevocable trust is just that – irrevocable. In most cases, once you create the trust and transfer ownership of your property or assets to the trust, you cannot modify or amend the trust or access any trust property.
Why would someone want to permanently relinquish ownership rights of their property while they are still alive? There are different goals associated with irrevocable trusts, including:
- Asset protection
- Estate tax avoidance
- Protecting beneficiaries with special needs
The right attorney can review your situation and identify whether an irrevocable trust might be appropriate and which kind is necessary to achieve your goals.
Types of Irrevocable Trust
Irrevocable trusts can be inter vivos (living) trusts or testamentary trusts. Living trusts are formed while the grantor or grantors are still alive, while testamentary trusts take effect after the grantor dies, which makes them irrevocable by design.
The following are some examples of the many types of irrevocable trusts that are available for sophisticated estate planning needs:
Asset Protection Trust – This aims to protect assets from creditors for a set period of time, with the possibility of the grantor regaining control of the assets once the trust terminates.
Charitable Trust or Charitable Remainder Trust – You can set up these types of trusts to lower estate taxes while providing gifts to charitable organizations. With a charitable remainder trust (CRT), you can set it up to also provide benefits for you earned by your gifted assets.
Special Needs Trust – If you have an adult child or another loved one with special needs, you can set up this trust to provide them with additional income while still allowing them to qualify for necessary public benefits. These trusts are often in effect for the lifetime of the beneficiary.
These are only a few examples of trusts that might be irrevocable but that also might benefit you and your beneficiaries in important ways. You might want to create an irrevocable trust if you have complicated circumstances, including:
- Having wealth that might be subject to estate taxes
- Working in a profession that might have a high risk of lawsuits against your personal assets
- Having beneficiaries who need special care
- Other complex financial circumstances that require advanced asset protection
The best way to know whether an irrevocable trust is right for you is to have an experienced attorney evaluate your estate planning needs and options.
Consult with Our Orange County, Los Angeles County, Riverside County, San Bernardino County or San Diego County Irrevocable Trust Lawyers
If you have complicated financial circumstances, you need a sophisticated estate plan, and the Law Offices of Roshni T. Desai can assist you. Call 714-694-1200 or contact us online for a consultation today.