What Are the Differences Between Revocable and Irrevocable Trusts?
A trust is a form of estate planning that can go into effect while you
are still alive. A trust can give you assurance that your property will
be taken care of after your death. It is never too early to make arrangements
for your important assets, to ensure that they pass to your loved ones
with minimal difficulty. Establishing a trust can help you gain peace
of mind and can save your loved ones the hassle of navigating the probate process.
A revocable trust is one that has room for modification. Under this type
of trust, you can place assets into a trust and in the future, remove
the assets and terminate or change the terms of the trust. An irrevocable
trust does not allow amendments or termination except under limited circumstances
or as provided by the terms of the trust. After you place an asset or
piece of property into an irrevocable trust it belongs to the trust.
For further information about setting up a trust
contact our attorneys from Shaheen & Gordon, P.A.!
Assistance from a New Hampshire Estate Planning Attorney
Placing assets into trusts, particularly irrevocable trusts, may have gift
tax, estate tax, and Medicaid planning consequences. An irrevocable trust
can be drafted so that income taxes are paid by the creator of the trust
(known as the grantor), the trust itself, or the beneficiaries. The consequences
are complex and a New Hampshire attorney can help you determine which
type of trust is best for your circumstances. This determination will
be made after careful consultation and will be based primarily upon your
motivation for setting up a trust.
A carefully drafted irrevocable trust can remove assets from your estate
for estate tax or Medicaid purposes while still preserving a measure of
flexibility to make changes in the future. It can also be used to accomplish
charitable estate planning, minimizing income taxes while benefitting
a cause or causes that are important to you.
Elder Law & Estate Planning Attorneys