3 things about irrevocable trusts you should remember
One of the most important things you can do as an adult is to ensure you have your affairs in order in case something happens to you. Getting your estate plan in order is vital.
A comprehensive estate plan includes more than just a will. Some individuals choose to pass on assets via trusts because of the benefits they provide. Trusts are classified as either revocable or irrevocable. These are some points you should know about irrevocable trusts.
1. Irrevocable trusts can’t be changed
Once you create an irrevocable trust, it can’t be changed. The only exception to this is if you get the consent of the court or of the individuals named in the trust. Once the trust is created and funded, you give up control of the contents to a trustee.
2. Irrevocable trusts provide protection from creditors
Since you don’t control the contents of the trust, your creditors can’t stake claims against the trust. This is important for people who have high-risk professions or other situations that could lead to lawsuits. It’s a way to ensure your loved ones will receive what you intend them to receive.
3. Irrevocable trusts bypass probate
One of the most important benefits of irrevocable trusts for some people is that they bypass the probate process. This provides a bit of privacy for the beneficiaries.
Ensuring you have a comprehensive estate plan in place is crucial. Working with someone who understands your situation and how you can care for your loved ones can help you to make decisions about how to proceed.