Irrevocable Trust - The benefits
It's easy to setup an irrevocable trust and get major benefits.
You can put any asset into the trust: investment account, real estate and more.
Your trustees, which are usually your children, can take money out anytime tax free. So this is a superb way to give them their inheritance tax free.
If you ever need Medicaid you will qualify becuase you have no assets. But remember the 5 year lookback.
If the Trust generates income you can take it. No need to get permission from the trustees.
One more big benefit. In many States an irrevocable trust is a powerful tool for avoiding probate. When you place assets into an irrevocable trust, you are legally transferring ownership of those assets from yourself to the trust. Because you no longer personally own those assets at the time of your death, they do not have to go through the probate process.
Thanks to Attorney Karen Tobias (845) 876-3300 for helping me with this post. Karen is a Trust expert.
Tech Notes:
Disclaimer: This is not intended as legal or financial advice. It's for informational purposes only. For advice consult an attorney.
Content written and posted by Ken Abbott abbottsystems@gmail.com
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