Estate Planning with an Irrevocable Trust
If you are concerned about preserving your wealth for your loved ones and the impact long-term care might have on your estate, an irrevocable trust may be a viable option for you.
When setting up an irrevocable trust, you, as the settlor, will name a trustee, who manages the trust and the assets contained within it. You will also name beneficiaries, or the people who will receive the trust’s assets once you pass away.
By creating an irrevocable trust, you transfer ownership of assets and property to the trustee, who then holds legal title to it until it is distributed to the beneficiaries. However, “irrevocable” means that you cannot regain ownership of the property in the trust without the consent of the trustee and all beneficiaries.
A number of benefits
So why would you do something like that? For one, it protects your assets, especially if you need long-term care sometime in the future. Rather than using your personal assets to pay for a nursing home, you may be able to qualify for Medicaid benefits, as the assets in an irrevocable trust cannot be counted as personal resources.
Additionally, you would be able to maintain control of your assets, as you are the one who gets to establish the terms and how those assets should be used. And, through a power of appointment clause, you can reserve the right to change the beneficiaries if it becomes necessary to do so later on.
Although you cannot have access to the principal of the trust, you may be able to continue to benefit from the trust’s income. This can provide a great deal of peace of mind, as you can feel as though you still have control over your assets.
An irrevocable trust can be a helpful estate planning tool to protect your assets and ensure you are able to pass on more of your wealth to your loved ones after you pass away. For further information on these trusts, speak with a skilled Florida estate planning attorney at the Charles Law Offices.