What are the advantages and disadvantages of using an irrevocable trust instead of a will?
What are the advantages and disadvantages of using an irrevocable trust instead of a will?
An irrevocable trust is one that can't be undone; the trust's creator relinquishes all control over it, and it becomes its own entity. The person who set up the trust—called the grantor or settlor—is typically still in control of the trust while they are alive, but once they die, the beneficiaries of the trust can't change its terms or alter how it's managed.
The grantor could extend this to include things like being unable to modify the terms of the trust if there was a change in circumstances for any of its beneficiaries. If a beneficiary tried to do this, it would require a court proceeding and would likely be met with resistance from other beneficiaries and from the trustee of the trust, who oversees its day-to-day operations. So why would someone use an irrevocable trust? There are some advantages to doing so:
Irrevocable trusts aren't taxable entities when they are first created—they are considered part of their grantor's estate until distributions are made to beneficiaries. This means that any assets you put into an irrevocable trust wouldn't have a tax bill attached to them at creation. It is also not subject to inheritance tax and probate fees. The money will be given to the beneficiaries of the trust upon your death.
With an irrevocable trust, you can avoid having to deal with probate if you ever pass away. This is because the trust is set up in a way that only allows designated people to have access to your assets, ensuring that everything goes where it's supposed to go.
Probate is a process that involves going through the court and hiring a lawyer, and it can be expensive. It can also take a lot of time and effort—sometimes years—and there's no guarantee that your estate will be settled within that time period. Irrevocable trusts are better for both parties because they're simpler and more efficient. They help your family avoid stressful situations around your death, and they keep your property from being tied up in court for an extended period of time.
If you have any questions or in need an Irrevocable Trust Attorney, we have the Best Attorneys in Utah. Please call this law firm for free consultation.
We help you with Estate Planning, Wills, Trusts, Power of Attorney, Health Care Directive, Estate Administration, Probate and More
Parklin Law - Estate Planning
5772 W 8030 S, # N206
West Jordan UT 84081
(801) 618-0699
40.605070, -112.027530
Disclaimer: This is not legal advice and is simply an answer to a question and that if legal advice is sought to contact a licensed attorney in the appropriate jurisdiction.
