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Drafting Irrevocable Trusts

By Our Pasadena Estate Planning Lawyers

If you are in need of an effective irrevocable trust, contact Green, Stewart & Paul Attorneys at Law today. Our estate planning lawyers in Pasadena can help you create a bulletproof trust in a timely and professional manner.

What is an Irrevocable Trust?

Irrevocable trusts can’t be modified or terminated without the permission of the beneficiaries or the people for whom the trust was intended to benefit.

When assets are permanently transferred to an irrevocable trust, the owner of that asset immediately loses all rights of ownership.

What Are the Advantages of an Irrevocable Trust Over a Revocable Trust?

Irrevocable trusts often offer tax benefits that a revocable trust does not. An irrevocable trust may also protect the trust against creditors and lawsuits in ways that are not available for a revocable trust.

Irrevocable trusts also have many different tax consequences, and you should consult with an attorney to have the different benefits and consequences of your trust explained to you.

You should consult an attorney to see what type of trust is most appropriate for your situation.

Are there Different Types of Irrevocable Trusts?

Yes, they are:

  • Bypass Trusts – Used to ensure that the spouse has income for the duration of the spouse’s life and is used to take advantage of the marital deduction.
  • QTIP (Qualified Terminable Interest Property) Trusts – Often leverages Section 2056 of the Internal Revenue Code which, when a part of a larger estate planning strategy, can preserve the estate for successors.
  • QDOT (Qualified Domestic) Trusts – Generally used for non-US citizens who wish to claim marital deductions for estate tax purposes.
  • Charitable Trusts – Generally used to leave gifts to non-profit organizations.
  • GRAT (Grantor Retained Annuity Trust) – Commonly used to leave large financial gifts to family members without paying a gift tax.
  • GRUT (Grantor Retained Unitrust) – Another strategy for leaving gifts to family members.
  • GRIT (Granto Retained Income Trust) – A tax-saving strategy that often works well with those who need savings on federal gift tax.
  • QPRT (Qualified Personal Residence Trust) – Typically used to transfer residences at a low gift tax value.

With all trusts, you should consult an estate planning attorney in Pasadena to ensure that the tax saving strategy is appropriate for your estate and that it will preserve your estate for your children.

To learn more about drafting irrevocable trusts and how we can help you, feel free to contact us today at (626) 325-0770 and set up a case evaluation.

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