When you pass away, do you know where your assets will go? For those who have spent time thinking about this question, they know that they have to set up a living trust to pass along their assets to their beneficiaries in order to avoid probate. However, there are two types of trusts that a person can use to do this, such as revocable and irrevocable trusts.
While most families establish a revocable living trust so that changes can be made to it in the future, many wealthy people often find tax advantages in irrevocable living trusts. Because ownership of property transfers to the trust while the grantor is still living, an irrevocable living trust allows for the protection of assets and helps avoid estate taxes.
Because an irrevocable living trust cannot be changed once it has been signed by the grantor, many people do not want to establish an irrevocable trust. However, it can be done correctly to offset taxes if careful consideration and choices are made at the beginning. Because things happen like unexpected deaths of beneficiaries, it is another reason why people often fear establishing an irrevocable trust, thinking that they won’t be able to change their beneficiaries. Although these trusts cannot be changed, grantors can add beneficiaries and change percentages in the event of a tragedy.
While irrevocable trusts are not for everyone, an experienced estate planning lawyer will be able to help you determine if a revocable or irrevocable trust is better for your situation. When assessing your Georgia estate planning options, please contact the Shane Smith Law to speak with a skilled Peachtree City estate planning lawyer today at (770) 487-8999.