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Irrevocable trusts may simplify an estate plan

On Behalf of | Jan 13, 2025 | Estate Planning

People who are creating an estate plan usually want to ensure their assets are passed down to the loved ones they choose. This can be done through the will; however, some people find that using trusts is the preferable option. 

Trusts are all categorized as either revocable, meaning they can be changed after they’re created, or irrevocable, meaning they can’t be changed without court or beneficiary approval. Because of the permanency of an irrevocable trust, they have very specific benefits.

Ease of transfer

An irrevocable trust makes it much easier for your loved ones to get the assets they’re due. These trusts don’t have to go through the court process, so it’s possible to get them the assets faster than what would be possible if they had to go through probate. 

Protection of assets

Once an irrevocable trust is established and funded, the assets in it are controlled by a trustee instead of the creator. This enables those assets to be protected from creditor claims against the creator. 

Potential tax benefits

Some people who establish irrevocable trusts do so because the assets within the trusts are excluded from the estate. This can reduce the overall value of the estate, which may help to reduce the taxes owed on the estate.

People who are interested in establishing an irrevocable trust as part of their estate plan should ensure they do so in a legally valid manner. Working with a professional who can assist with this may be beneficial to reduce stress and increase peace of mind regarding the trust.