Irrevocable Trusts in Oakland County

The Advantages of an Irrevocable Trust

An irrevocable trust cannot be changed or altered before the terms of the trust permit. When you transfer property into the trust, you no longer own the trust assets. Because you no longer have control over the assets, there are a variety of benefits to this type of trust, including estate tax reduction and asset protection. Our Oakland County estate planning attorney can discuss your options with you and determine if an irrevocable trust would be beneficial to you and your family.

Estate Tax Reduction

Although the state of Michigan does not have an estate tax, the federal government does. As of 2013, estates worth over $5,250,000 will be charged an estate tax. If you have a large estate, it may be beneficial to begin reducing it through an irrevocable trust. Because the property in the trust is no longer yours, it cannot be taxed. Additionally, irrevocable trusts allow you to give your heirs and beneficiaries their inheritance with certain provisions. If one of your grandchildren does not handle money well, for example, you can create a trust that distributes funds according to a set schedule.

Asset Protection from Irrevocable Trusts

Asset protection safeguards property from creditor claims and lawsuit settlements. Because you no longer own or have control over the property, creditors cannot access the funds. It is possible to name certain family members as beneficiaries for the trust and maintain indirect access to the trust assets that way. Irrevocable trusts can also reduce your estate to help you qualify for Medicaid, which provides federal assistance for medical care, including long term care.

Enlist an Oakland County Estate Planning Lawyer Today

With more than 20 years of experience, we are well-equipped to help you. Clients come first at our firm, and we personally listen to their individual needs before providing them with counsel and representation. Take advantage of our free case evaluation to see if an irrevocable trust would be beneficial for you and your loved ones. For more information about your legal matters, contact The Law Offices of Stuart Lee Sherman, PC today!