What are Irrevocable Trusts?

Irrevocable trusts are a type of estate planning tool that can be used in a number of different situations. Here are the basics of irrevocable trusts. 

Irrevocable Trusts

As indicated by the name, an irrevocable trust is one that you cannot change once you set it up. If the beneficiary of the trust decides that it can be changed, this is the only provision for changing the trust. When you set up this type of trust, you are going to transfer certain assets into the ownership of the trust.

Benefits

By using an irrevocable trust, you are going to be able to help your family avoid the probate process when you die. If you did not have some type of trust, your family would have to go to probate court, and this process can take a considerable amount of time.

Another benefit of using an irrevocable trust is that you will be able to help your family avoid paying estate taxes when you die. The assets that are transferred into an irrevocable trust are not going to be considered part of your estate because you will no longer be the owner of them. This means that your beneficiaries will not have to pay estate taxes on this amount.

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