For generations, the will was considered the status quo way for ordinary Americans to organize their estate.
But in recent years, a plethora of estate planning tools have become vogue, encouraging estate planners to explore exciting will-alternatives.
Irrevocable trusts are one new tool garnering attention as of late, due to their many unique advantages. But, like anything else in the estate planning world, they have drawbacks and aren’t suitable for every situation.
If you are considering will-alternatives, here’s what to know about irrevocable trusts:
Taxes
The dreaded estate tax haunts the dreams of many estate planners, and an irrevocable trust could be the salve for such concerns. All assets moved into an irrevocable trust are no longer considered part of the trustor’s estate, which means they are not subject to the estate tax.
Lawsuit Protection
Concerned that creditors are after you kids’ inheritance? Assets moved into an irrevocable trust are no longer the property of the trustor and cannot be seized as court-ordered restitution.
Modifiability
An irrevocable trust cannot be modified. This may equal peace of mind for some estate planners, but if your situation is more fluid and subject to change, the irrevocable trust might not be for you.
The fact of the matter is that you probably don’t the estate plan that’s right for you before meeting with an experienced estate planning lawyer.
A lawyer can identify issues a regular person may never contemplate; they can also anticipate how a judge is likely to interpret certain terms, ensuring the plan will be interpreted according to your wishes.
San Diego residents shouldn’t hesitate to reach out. If cost is a concern, many lawyers offer a free initial consultation at no out-of-pocket cost to the client.