An Irrevocable Trust can be an excellent way to protect assets from the reach of creditors, including the taxing authorities and a nursing home. An Irrevocable Trust is a trust that cannot be changed once it is created. Further, once you transfer an asset into an Irrevocable Trust, you usually cannot remove it from the Trust. As such, the decision to create and fund an irrevocable trust should be made only after consideration of all of the pros and cons.
Here are some common reasons to use an Irrevocable Trust:
- To preserve your home or other assets from having to be spent on long-term nursing home care
- To avoid estate taxation of life insurance proceeds
- To transfer a highly valued home or vacation property to children in a tax favorable manner
- To make gifts to minors
- To protect governmental benefits for a person with disabilities
There are other reasons why using an Irrevocable Trust may be appropriate for your particular situation. To learn more about Irrevocable Trusts click here to read Attorney Suzanne R. Sayward’s article, Five Reasons to Create an Irrevocable Trust.
To schedule an appointment contact Samuel, Sayward & Baler LLC by phone at 781/461-1020 or by email using our Contact form.