Generally, in an Irrevocable Living Trust, the Trustor (the person who created the Trust) surrenders all control of the assets that are transferred into the Trust. As the name implies, an Irrevocable Living Trust cannot be revoked, terminated, or changed once the Trust has been finalized. The “living” portion of the name refers to the fact that the Trust takes effect while the creator of the Trust is alive.
Why would anyone want an Irrevocable Living Trust?
Many people ask, “Why would you want an Irrevocable Trust, since that means that you can’t change your mind once you’ve created the Trust?” The main reason a person might consider an Irrevocable Trust is because they want to reduce taxes and protect property. Dozens of Irrevocable Trusts exist for this purpose. Which type of Irrevocable Trust is chosen should be based on the goals of the estate owner.
Estate taxes can be fairly hefty if not planned for properly. To reduce taxes an estate owner might consider a Charitable Trust, Grantor Retained Annuity Trust (GRAT), Bypass Trust, a QTIP or QDIP Trust. Property protection is generally done in a Nevada Asset Protection Trust, which is a special type of Irrevocable Trust that has a few exceptions to the Irrevocable Trust rules. A Nevada Spendthrift Trust or Special Needs Trust also protect Trust property. Again, these are just a few of the types of Irrevocable Trusts that protect assets and reduce estate taxes. A Revocable Living Trust does not reduce estate taxes.
Nevada Irrevocable Living Trust Lawyer
Meeting with estate planning attorney Gregory S. Smith will help you determine the best estate plan that is right for your needs to meet your estate planning goals. Smith & Shapiro is open Monday – Friday, 8:00am – 5:00pm. Please call 702-318-5033 or fill out our online contact form above to schedule an appointment.