Irrevocable vs. Revocable Trusts
Fairfield County Estate Planning Lawyer
trust is where the creator puts assets in the hands of a trustee to administer
for the benefit of the beneficiaries as instructed by the creator (in
CT the person creating the trust is known as the "settlor").
irrevocable trust, the settlor of the trust no longer owns the assets or has any control
over them. In a
revocable trust, the settlor of the trust generally names himself or herself as the original
trustee and can still dispose of the assets. Each kind of trust has its
advantages and choosing the right type of trust for proper estate planning
is very important. To consult about the benefits of each, you are urged
to contact an estate planning attorney in Fairfield County.
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Benefits of an Irrevocable Trust
When you set up an irrevocable trust, the downside is that you no longer
control the assets. The upside is that generally you no longer pay taxes
on the money (the trust does). There is greater protection of the money
if you are sued, and the trust assets are not subject to estate tax when
you die. Furthermore, it can be used as a vehicle for implementing estate
planning strategies that increase the size of your estate while providing
income tax-free distributions to your loved ones when you pass away.
Benefits of a Revocable Trust
In a revocable trust, you keep control over the assets and have access
to them. You can avoid probate because the money is no longer part of
your estate. You can set up a successor trustee to take over when you
become incapacitated or die so that your intentions to care for yourself
and family are carried out. The downside is that it is still your money
so you still pay taxes on it. You can lose it if you are successfully
sued and estate taxes will apply at death.
Estate Planning Attorney serving Greenwich, Stamford, Darien, Westport,
Fairfield, Trumbull, New Haven and Milford
Massih Law, LLC consult with clients on the benefits of revocable and irrevocable trusts.
My job is to prepare revocable and irrevocable trusts to serve the intentions
and best interests of my clients, while providing
asset protection and minimizing
tax impact. I invite residents throughout Fairfield County and New Haven County including,
but not limited to, Greenwich, Stamford, Darien, Westport, Fairfield,
Trumbull, New Haven and Milford to meet with me for a consultation on
Contact an estate planning lawyer
to discuss the Benefits of Irrevocable v. Revocable Trusts.