IRREVOCABLE TRUST

Estate Planning and Tax Protection with Irrevocable Trusts

One very important aspect of creating your estate plan is to determine how to avoid federal estate taxes. These taxes can greatly reduce the amount that you planned to leave to your heirs. For some, establishing an irrevocable trust is the best available option.

Advantages and Disadvantages of an Irrevocable Trust

As the name implies, an irrevocable trust is one that cannot be amended, changed or altered once it is created. With this type of trust, all of the assets placed in an irrevocable trust are removed from the value of your estate, keeping the value of a large estate below the federal estate tax exemption (your Unified Tax Credit) threshold. However, you will lose control of the assets once they are placed in the trust which may include life insurance policies, real estate, businesses, or other property of value as you will need to appoint a trustee that is not yourself.

An irrevocable trust does not completely eliminate taxes altogether, but it does set up a taxable entity that is separate from your estate. This may be taxed at a lower rate than all of your assets are combined together as part of your estate. Another benefit is that the assets in the trust are protected from creditors, judgements and divorcing spouses.

The trustee you appoint can live out of your state, and does not need to qualify through probate court. This is not the case for appointing a Personal Representative for a will. And, unlike a will on its own, trust are private and not available for public records.

The Importance of Hiring an Experienced Estates and Trusts Attorney

Setting up an irrevocable trust is detailed and labor intensive, and you will need to have an experienced firm with many years of experience in this area to expertly handle the necessary paperwork for you. You can rest assured that the law firm of MMJ Law will take the time to examine your entire estate to determine if this is the best estate planning device for your situation. Once assets become part of the irrevocable trust, you can’t go back and undo anything without the permission of the trust’s beneficiaries, so you will need an experienced firm that can guide you through your estate planning.

In a revocable trust, you maintain complete control of all assets until your death, at which point a revocable trust becomes an irrevocable trust.

Because Florida’s Trust Code and the United States Department of Veterans Affairs rules governing irrevocable trusts have undergone a number of revisions in recent years, it is extremely important that the attorney who sets up the irrevocable trust has a substantial amount of experience and is thoroughly familiar with the current law.

Legal Estate Planning Assistance in Florida

Establishing an irrevocable trust could provide significant benefits to you and your family when it comes to managing your estate, but it should only be handled by a highly skilled estates and trusts attorney. When you hire the estate planning law firm of MMJ Law, you can rest assured that our attorneys

will put our many years of experience to for work you.  If it is determined that an irrevocable trust is the best legal instrument for you and your family, we will ensure that every detail is addressed when creating the trust, preventing costly mistakes that could arise later for you or your heirs.

Call the law offices of MMJ Law at (813) 856-5625 today to schedule a time to meet and learn about your estate planning options. Our office is conveniently located in Tampa, and we are available for weekday and evening appointments.