Irrevocable vs. Revocable Trusts
Connecticut Estate Planning Lawyer
A 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"). In an 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 Connecticut.
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
We at 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 their needs.
Contact a Connecticut Estate Planning Lawyer
at the firm to discuss the Benefits of Irrevocable v. Revocable Trusts.