Los Angeles Irrevocable Trust Attorney
Why Choose an Irrevocable Trust?
An irrevocable trust is one avenue available to ensure your estate is handled according to your wishes.
Many times, revocable trusts are written to become irrevocable after the creator of the trust dies. Irrevocable trusts provide asset protection because the assets are placed in a trust fund beyond the control and access of the trust maker. In turn, this makes such assets beyond the control of creditors. The assets will still go to the beneficiaries, however, providing the family with the financial support due to them under the trust instructions.
Unlike a revocable trust, an irrevocable trust cannot be dissolved once it has been finalized. An irrevocable living trust is one that is finalized during the grantor's life, and is also not eligible for termination. There are differences in the irrevocable trust you can establish, and your personal situation and objectives – such as reducing exposure to taxes -will shape the kind you use.
A few types of irrevocable trusts include:
- Bypass Trusts – This trust allows you to limit taxes on an estate upon the death of both spouses. For example, the property of a spouse who passes is placed in the trust, which the surviving partner can access, but not own outright. When the surviving partner passes, the property in the bypass trust does not become part of their estate.
- Charitable Trusts – This type of trust leverages gifting and charitable donations to limit exposure to estate and income taxes.
- Life Insurance Trusts – Life insurance trusts can limit taxes on an estate by preventing life insurance funds from becoming part of a taxable estate. In this situation, the trust become the "owner" of the policy.
- Spendthrift Trusts – These estate planning tool enables you to control gifts that you pass to individuals in the event they unable to manage the finances on their own. In such cases, property is placed into the trust, and the trustee distributes the funds to beneficiaries in accordance to what is determined in the trust. Beneficiaries cannot access the trust property on their own, and the trust is protected by the beneficiary's creditors – at least until the beneficiary receives the money directly.
How a Los Angeles Trust Lawyer Can Help You
There are many options and uses for irrevocable trusts. An attorney in our law firm can help you handle issues associated with your irrevocable trust. The Law Offices of David A. Shapiro, P.C. focuses on all aspects of trust litigation and administration, so do not hesitate to contact a Los Angeles trust attorney at the firm today.