Irrevocable Trusts Do’s and Don’ts

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Setting up an irrevocable trust is a big decision. Unlike revocable trusts, which can be changed or amended at any time, it is difficult, if not impossible, to change the terms of an irrevocable trust once it is created. However, these documents can be highly beneficial for many individuals because of the tax benefits and asset protection they offer.

If you aren’t sure whether an irrevocable trust is right for you, please contact our legal team immediately. We can discuss your goals and analyze your situation to offer the legal counsel you need when making such important decisions. Call today for a consultation at (516) 253-1366.

What Are Some Important “Do’s” When it Comes to Irrevocable Trusts?

Some actions that are important when using an irrevocable trust are:

  • Transfer assets to the trust according to the counsel from your lawyer
  • Use trust funds to repair, maintain, and improve the property in the trust
  • Use trust funds to pay real estate taxes and insurance
  • Contact your lawyer immediately if your circumstances have changed
  • Call your law firm if you want to change trustees
  • Choose your trustee carefully to avoid problems with changing trustees in the future
  • Reach out to your law firm immediately if the grantor of an irrevocable trust dies or becomes incapacitated

What Should I Avoid with My Irrevocable Trust?

When you have an irrevocable trust, you should NOT:

  • Use trust funds to pay for personal expenses
  • Use trust funds to pay for monthly bills, such as phone bills or utilities
  • Use trust assets to purchase vehicles
  • Gift assets from the trust to beneficiaries
  • Transfer assets into the trust without consulting your lawyer
  • Take gains or profits from trust assets

Should You Hire Our Irrevocable Trusts Attorneys?

Irrevocable trusts are not only for the ultra-wealthy. People from many financial backgrounds can benefit from the tax protections and flexibility that trusts offer. However, setting up an irrevocable trust can be complex, requiring much legal knowledge and experience. Making a mistake with an irrevocable trust can be costly and time-consuming as these trusts are extremely difficult to change once they are created.

If you are considering creating an irrevocable trust, please get in touch with our law firm immediately. We can help you decide if this is the right course of action for you. If you want an irrevocable trust as part of your estate plan, we will craft the document so that it represents your best interests and offers the greatest protection for your surviving family members.

Don’t delay the critical process of planning for your future by creating an estate plan. Take the simple step today of calling and setting up a consultation to speak with our talented legal team. Call (516) 253-1366 now!

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