People who are ready to get an estate plan set have a lot of things to think about. They must ensure that their assets are able to be passed down to their heirs appropriately. One option for doing this is to establish trusts.
When you start looking into trusts, you’ll notice that these are categorized as either revocable or irrevocable. A revocable trust is also known as a living trust and can be changed or dissolved as you see fit. That’s not the case with an irrevocable trust. Creators are limited in what they can do with this type of trust once it’s set up and funded.
Very strict requirements for changing the trust
Once you set up an irrevocable trust and fund it, you’re no longer the person who’s in charge of the assets. The trustee becomes responsible for the contents of the trust. You can’t make any changes to the terms of the trust unless you have the permission of everyone named in the trust. Because of this, you must ensure you set it up exactly how you want it right at the start.
Giving up control of the assets has a huge benefit – creditors can’t make a claim against the trust for debts you owe. This enables you to pass down the full value of the trust to your loved ones.
All adults must ensure they have their estate plan in order so their loved ones know exactly how to handle assets. Work with someone who can help you get everything set up in the best way. Once you have everything done, you can rest easy knowing you’ve taken care of your affairs.