Centennial Irrevocable Living Trust

Our Trust Attorneys Explain What You Need Know

What Is an Irrevocable Living Trust?

The irrevocable living trust is aptly named. This kind of living trust cannot be changed, amended, or dissolved after execution. Thus, the trust maker effectively surrenders ownership of any assets assigned to an irrevocable trust.

This kind of legal document can be directly contrasted with a revocable living trust. As you may have guessed, a revocable living trust grants the trust maker the ability to change or dissolve its terms so long as they are mentally capable.

Contact one of our irrevocable living trust attorneys today at (720) 770-3880.

What Is a Living Trust?

Living trusts of both varieties provide an alternative to a last will and testament. Under the right circumstances, living trusts provide certain advantages unavailable with a will.

• Unlike a will, living trusts avoid the probate process. Consequently, this often means a quicker distribution of the deceased’s assets. That is because it does not involve the courts. It also may mean conserving money because the estate does not pay out probate fees.
• Living trusts also provide privacy. Wills become public record after one’s death. However, living trusts remain private. Additionally, when you distribute the assets according to a living trust, you can keep it a private affair.
• A living trust also allows you to choose a successor trustee. If you happen to fall ill or incapacitated, then this person can manage your estate for you. Unlike with a will, this person can take over your affairs without court supervision.

Which Living Trust Would Best Fit My Needs?

If a living will is the right option for you, then you must decide whether to make it revocable or irrevocable. Oftentimes those who choose a living trust over a will instinctively gravitate toward the revocable version. This is perhaps because the immutable nature of an irrevocable living trust is, at face value, rather intimidating. However, there are certain benefits that an irrevocable living trust provides. Weighing the costs and benefits of each kind of living trust can help you determine which is right for you.

Benefits of an Irrevocable Living Trust

The execution of an irrevocable living trust makes its terms final. But such a significant action must have its benefits, right? Otherwise, no one would agree to it. There are three main advantages to this kind of legal document.

• You can protect certain assets by relinquishing ownership of them. Conversely, retaining ownership under a revocable living trust means you could lose your assets to creditors or lawsuits. By transferring assets out of your estate, any creditors or lawsuit judgment holders cannot take them. This is because, under an irrevocable living trust, you no longer own them.
• Additionally, by giving up ownership of certain assets, the value of these assets no longer contribute to the value of your estate. Because these assets are no longer yours, this change will be reflected in your federal estate taxes.
• Finally, by giving up ownership, you may qualify for government benefits. Owning valuable assets may count against you if you’re trying to get Supplemental Security Income, Medicaid, or Medicare benefits. In order to qualify for these services, you may need to file an irrevocable trust.

Is an Irrevocable Living Trust Right for You?

An irrevocable trust is a serious and complicated legal document. It is not just a form you can fill out. Thus, you really should work closely with an irrevocable living trust attorney. This is the best way to avoid making mistakes that you cannot remedy later.

Frequently Asked Questions About Irrevocable Living Trusts

At Skipton Law, LLC, we understand that navigating the complexities of estate planning can raise many questions. To help you make informed decisions regarding irrevocable living trusts, we’ve compiled a list of frequently asked questions that address common concerns and misconceptions.

1. Can I change the terms of my irrevocable living trust?

Once established, irrevocable living trusts generally cannot be altered. However, there are specific circumstances where modifications may be possible. Our attorneys can provide guidance on your options.

2. How does an irrevocable living trust affect my taxes?

Irrevocable living trusts can have unique tax implications. In many cases, assets transferred into the trust are removed from your taxable estate, potentially lowering your estate tax liability. Consult with our experts to understand how this may benefit you.

3. What happens to my irrevocable living trust if I move to another state?

The laws governing trusts can vary by state. If you relocate, it's essential to review your trust with our attorneys to ensure it remains valid and effective in your new location.

4. Can I serve as the trustee of my irrevocable living trust?

In most cases, you cannot be the trustee of your own irrevocable living trust. However, you can appoint a trusted individual or professional to manage the trust’s assets on your behalf.

5. What assets can I place in an irrevocable living trust?

Virtually any asset can be placed in an irrevocable living trust, including real estate, bank accounts, investments, and life insurance policies. Our team can help you determine which assets are best suited for your trust.

If you have more questions or need personalized advice, don’t hesitate to reach out to us. Our experienced attorneys at Skipton Law, LLC are here to assist you in making the best choices for your estate planning needs.

Located in Centennial, Colorado, Skipton Law provides estate planning services to the surrounding area. If you think this type of document is right for you, then contact one of our irrevocable living trust attorneys today at (720) 770-3880.