Estate planning is more than just having a will. In order to have an estate plan that actually protects your interests and keeps your beneficiaries from unnecessary harm, you would be wise to consider the benefits of a trust. There are many different types of trusts, but by having one in place, you may be able meet a specific goal or objective, such as caring for a Texas loved one after you pass.
A trust allows you to set money or assets aside for a specific person or cause, but choosing the right option is not always easy. One specific type of trust you may consider is an irrevocable trust. This option allows you to shield your trust from creditors and offers certain benefits that may not be available with other trust options.
The details of this type of trust
Some trusts are revocable. This means that you can go in at any time and change the details of the trust, such as the trustee or beneficiaries. Like the name suggests, an irrevocable trust is not one that you will be able to change once it is in place. Consider the following about this option:
- The irrevocable trust is unalterable and is not eligible for modification once completed.
- By setting assets and money aside in an irrevocable trust, you will relinquish control over them.
- While you may not have control over the property in the trust, you can change certain details, such as a beneficiary if you retain that right in the trust document.
- There are certain tax benefits only available with an irrevocable trust.
- Assets and money in an irrevocable trust would not affect a beneficiary's eligibility for certain government benefits, such as Medicare.
- An irrevocable trust can help lower the estate taxes of your estate.
This option will only be beneficial in certain circumstances. If you believe that you could benefit from the types of protection that an irrevocable trust can provide, you may want to include this as part of your estate plan.
A complete estate plan
For you, a complete estate plan could involve more than drafting or updating a will. It is possible that a trust is the right choice for your individual situation, one that can provide you with peace or mind and provide your beneficiaries with a measure of security regarding the future.
Estate planning can be a complex process, but you can learn more about the right steps for you by seeking a complete evaluation of your situation.