Similar to a revocable trust, an irrevocable trust is an entity that owns your assets; however, this trust typically cannot be changed, without court approval. Irrevocable trusts should only be used in special circumstances such as to transfer assets to avoid estate taxes or if there may be some type of risk of future personal liability. Irrevocable trusts may be utilized to minimize taxes and preserve the estate from third party liability. A revocable trust becomes irrevocable upon the incapacity or death of the settlor of the trust.
The person who is transferring his or her assets to the trust.
The person who receives the benefit from the assets that are being held by the trust.
The person in charge of managing the assets in the trust. He or she can hire others to manage brokerage accounts or other assets, but is ultimately responsible for making the decisions with respect to the trust assets.
Contact a Trust Attorney
Regardless of your financial situation, a trust can provide many benefits. Through one-on-one consultations with our experienced Michigan estate planning attorneys, we can use a trust to provide for many different positive results:
- Smooth distribution of assets during incapacity and at death;
- Maintaining privacy regarding the distribution of your assets;
- Protecting minor children and ensuring adequate supervision of assets without court involvement; and
- Lowering estate tax liabilities.
Do you need to establish a trust or have more questions? Contact our trust attorneys today.