Establishing a trust is one of the most common and effective ways of protecting assets. And when even higher levels of asset protection are necessary, an irrevocable trust may be the best option. But an irrevocable trust needs to be considered carefully and drafted so it is legally airtight. This is where legal assistance is not only highly recommended — it is vital.
A Springfield irrevocable trust attorney can guide the way, provide sound advice, and take all necessary steps to establish your Missouri irrevocable trust. At Parks & Jones, our elder law and estate planning attorneys have the knowledge and experience to advise you about a potential irrevocable trust.
Revocable Trusts v. Irrevocable Trusts
There are two main types of trusts, revocable trusts and irrevocable trusts. The difference between them is relatively simple: a revocable trust can be revoked, modified or amended, while an irrevocable trust cannot. As for trust assets, the assets placed into a revocable trust can be withdrawn, while irrevocable trust assets generally cannot be removed. (A revocable trust automatically becomes irrevocable upon the death of the person who established the trust, known as the trustor.)
Both revocable and irrevocable trusts provide the primary benefits of any trust. These benefits include the ability to avoid probate, which can be a lengthy, expensive process that will be a matter of public record. Trusts provide a streamlined method of transferring assets in a way that is not open to the public and can present tax advantages.
Advantages of Missouri Irrevocable Trusts
Although the irrevocable trust does not have the flexibility of a revocable trust, it does present some distinct advantages. Some of these are as follows:
- Protection from Creditors: Assets placed in an irrevocable trust can be protected from creditors and judgments. This is because the irrevocable trust assets no longer belong to the trustor, they instead belong solely to the trust. This is not the case with revocable trusts.
- Estate Tax Benefits: If you have a large estate that is subject to the federal estate tax, funds in an irrevocable trust are not subject to this tax.
- Government Benefits Not Affected: High levels of personal assets can affect a person’s eligibility for certain government benefits, such as Medicaid, Medicare, or Social Security Disability Income. However, assets properly placed in an irrevocable trust could potentially not count as your assets, thus not affecting your eligibility.
A well-qualified Springfield irrevocable trust attorney can guide you through your specific circumstances and determine whether a Missouri irrevocable trust is right for you.
See How a Springfield Irrevocable Trust Attorney at Parks & Jones Can Help
If you believe you may want to establish a Missouri irrevocable trust, speak with a Springfield irrevocable trust lawyer at Parks & Jones by calling (417) 823-9898. Irrevocable trusts can be effective options for asset protection, but only under certain circumstances and when the trust is properly established and funded. To gain the benefit of our legal guidance, contact us to schedule a free attorney consultation or request a consultation here.