317-426-9334             445 N. Pennsylvania St., Indianapolis, IN   46204

WHAT IS AN IRREVOCABLE TRUST?

 

When it comes to planning for the future of your estate, the thought is never pleasant,  yet  very  necessary.  The  assets  you’ve  accumulated  through  life should be designated as you see fit. What is the right way to designate your assets? How do you ensure your hard-earned property passes to those whom you choose?

 

What Is An Irrevocable Trust?

 

An irrevocable trust is a trust that holds assets, and cannot be revoked, altered or  amended.  The  beneficiary  of  an  irrevocable  trust  becomes  entitled  to  the assets as stipulated by the grantor in the terms of the trust. In most cases, the beneficiary  or  the  trust,  and  not  the  grantor,  is  responsible  for  taxes  on  the income generated by the trust.

 

Why Would Someone Want An Irrevocable Trust?

 

An irrevocable trust may prove beneficial in situations where a transfer of assets is necessary, for example, in order to avoid estate tax on those assets. Because irrevocable  trusts  remove  all  aspects  of  ownership,  the  trust’s  assets  are  not included  the  grantor’s  taxable  estate.  The  grantor  is  also  relieved  of  the  tax liability  on  the  income  generated  by  the  assets.

 

Creating  an  irrevocable  trust also allows any assets within the trust to be exempt from probate so they can be distributed to the beneficiary without probate court supervision.Assets held in an irrevocable trust can include:

 

•Business assets

•Investment assets

•Cash

•Life insurance policies

 

A skilled estate planning attorney can help you decide if an irrevocable trust is right  for  you.

 

 

 

 

 

 

 

 

 

© Copyright 2018 Barbara J. Baird   •  Advertising Material

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Barbara J. Baird Attorney at Law

445 N. Pennsylvania St

Indianapolis, IN   46204

317-426-9334

© Copyright 2018 Barbara J. Baird  |  advertising material

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