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!