Irrevocable trusts are estate planning tools that cannot be altered once they have been authorized (signed) and officially put into effect. These types of trusts are the counterparts to revocable living trusts, which may be altered at any point in the future by the trustmaker or grantor. There can be a number of specific benefits to developing an irrevocable trust to protect your assets and your loved ones in the future, particularly when it comes to future tax considerations and asset protection.
At JR Phillips & Associates, PC, our Centennial irrevocable trusts attorneys are experienced at developing these types of trusts and helping to oversee their administration once they are in place. When you are ready to develop an irrevocable trust, don’t hesitate to contact us to learn more about your options and the best solutions for safeguarding your loved ones and assets well into the future.
Benefits of Irrevocable Trusts
Some of the specific benefits associated with irrevocable living trusts include (but are not exclusive to):
- Tax benefits – When you create an irrevocable trust and transfer certain assets to it, those assets become the property of the trust. This effectively means that you and your beneficiaries do not directly own these assets and that, as a result, you will generally not be responsible for paying the taxes on these assets. Additionally, there may be federal or state tax exemptions that specifically apply to trusts, which can provide you and/or your beneficiaries with further financial savings.The tax benefits of irrevocable trusts can also come into play with charitable estate planning, as a trustmaker or his beneficiaries may be able to benefit from charitable tax deductions in the future if the irrevocable trust contains terms for charitable donations.
- Asset protection benefits – Because the assets transferred to irrevocable trusts are not considered to be directly owned by the trustmaker or the beneficiaries of the trust, these assets can be effectively protected from creditors in the future. Additionally, the assets of the irrevocable trust will not be considered when it comes to beneficiaries’ eligibility for government benefits at any point in the future.In other words, while beneficiaries to irrevocable trusts can obtain financial support and benefits from the trust, they can rest assured that these assets will be outside of the reach of creditors and considerations for government assistance if or when these issues arise at any point in the future.
Assets Protected by Irrevocable Trusts
Nearly any type of asset can be transferred to, held in and protected by an irrevocable trust, including (but not limited to):
- Life insurance policies (and their proceeds)
- Real estate and property
- Investment assets.
Centennial Irrevocable Trusts Attorneys at JR Phillips & Associates, PC
When you are ready to develop an irrevocable trust or you need assistance administering any type of trust, you can rely on the irrevocable trusts lawyers at JR Phillips & Associates, PC. We provide a thoughtful, comprehensive approach to our clients’ estate planning, elder law and other legal needs, and we take pride in helping each of our clients and their families find the best solutions for them.
Our Centennial irrevocable trusts lawyers are skilled at using a variety of traditional and innovative approaches to develop solutions that are perfectly tailored to our clients’ needs and objectives. Our goal is to help our clients efficiently navigate the complexities of the law so they can develop effective, prudent solutions that will protect them, their assets and their families in the future.
Contact Us Today
You can learn more about irrevocable trusts and other estate planning options during an initial consultation. To schedule this meeting, call us at (303) 741-2400 or email us using the contact form at the top of this page.
From our offices in Denver, we serve clients throughout the southwest and southeast Metro Area, including (but not limited to) people in Highlands Ranch, Littleton, Castle Rock, Parker, Aurora, Greenwood Village and Englewood.