When you have a large estate, an important aspect of your estate planning is determining how to avoid federal estate taxes, which can substantially diminish the amount that can be passed on to your heirs. For some, establishing an irrevocable trust is the best available option. To learn more about whether or not establishing an irrevocable trust is right for you, speak with a Phoenix irrevocable trust attorney at Gorman & Jones, PLC.
An irrevocable trust is one that once created, cannot be altered. The downside is that you will lose control of the assets placed in the trust, which may include businesses, life insurance policies, cash, real estate, investments, and other property of value. On the other hand, all of the assets placed in an irrevocable trust are removed from your estate, making this a convenient way to keep the value of a large estate beneath the federal estate tax threshold.
An irrevocable trust doesn’t eliminate taxes altogether, but it does set up a taxable entity that is separate and distinct from your estate and may be taxed at a lower rate than when all of your assets are included together as part of your estate. An additional benefit is that the assets in the trust are protected from creditors.
Furthermore, unlike an executor of a will, the trustee assigned to manage the trust can live out of state and does not have to qualify through the probate court. And unlike wills, trusts are private and may not be opened to public scrutiny.
Setting up an irrevocable trust is detailed and labor intensive, so you will need to have a lawyer with plenty of experience in this area to handle the paperwork for you. Your lawyer will want to make a detailed examination of your entire estate to ascertain whether this is the best estate planning device for your situation. You must keep in mind that once assets become part of the trust, you can’t go back and undo anything without the permission of the trust’s beneficiaries and you will no longer own those assets.
In a revocable living trust, on the other hand, you maintain complete control of all assets until your death, at which point the trust becomes irrevocable. Arizona’s Trust Code has undergone a number of revisions in recent years, and it is extremely important that the Phoenix estate planning attorney who sets up the trust has a substantial amount of experience and is thoroughly familiar with the current law.
Establishing an irrevocable trust can sometimes provide significant benefits to your estate and your family, but it should only be handled by a seasoned Phoenix irrevocable trust lawyer with a detailed knowledge of estate planning law. When you hire the estate planning law firm of Gorman & Jones, PLC our attorneys will put our many years of experience to for work you and will look closely at the entirety of your estate to determine if this strategy is right for you. If it is, we will ensure that every detail is addressed when creating the trust, to prevent costly mistakes that could later cause problems for you or your heirs.
Call the law offices of Gorman & Jones, PLC at 602-388-1623 or contact us online today to arrange a time to meet with us to discuss your estate planning options. We have offices in Arizona in Phoenix, Scottsdale, Sun City, and Sun City West for your convenience, and we are available for weekday and evening appointments.