Trusts provide an effective way to protect and manage financial assets for yourself and your loved ones. An irrevocable trust, in particular, offers many benefits, including tax savings and asset protection. If you are considering setting up an irrevocable trust, this blog is for you! Here, we will discuss the important things you should know about irrevocable trusts, why you should consider setting one up, and how an attorney can assist you in the process. 

What is an irrevocable trust?

An irrevocable trust is a type of trust that cannot be modified or terminated once it has been created. Once assets are placed into the trust, they cannot be returned to the original owner, and the trust cannot be dissolved. This differs from a revocable trust, which can be changed or revoked by the grantor. 

Important things to know about irrevocable trusts

One of the most significant benefits of an irrevocable trust is that it offers asset protection. This means that assets placed inside the trust can be protected from creditors, lawsuits, and other legal actions. Additionally, because the grantor no longer has legal ownership of the assets once they are in the trust, they can reduce their estate tax liability upon their death. 

It is important to note that once assets are placed inside the trust, they cannot be retrieved by the grantor. This means that it is essential to think carefully about which assets to place in the trust and to ensure that you have other assets available for your needs. Additionally, it is essential to choose a trustee you trust, as they will be responsible for managing the trust assets. 

Why should you get an irrevocable trust?

There are several reasons why you might consider an irrevocable trust. One of the most common reasons is to avoid or reduce estate taxes. Additionally, irrevocable trusts can be used to protect assets from creditors, ensure that assets are distributed according to a specific plan, and provide for individuals with special needs. 

How can an attorney help you?

An estate planning attorney can assist you in creating an irrevocable trust that meets your specific needs. They can help you determine which assets to place inside the trust and draft a trust agreement that outlines the terms of the trust. Additionally, an attorney can guide you through the process of choosing a trustee and can help ensure that the trust is legally valid and binding. 

At The Terrell Law Firm, we provide trust drafting and creation services to clients in Oklahoma. Our team will work with you to create a trust that meets your unique needs and will help guide you through the process every step of the way. 

An irrevocable trust can be a powerful tool for protecting your assets and ensuring that they are distributed according to your wishes. If you are considering setting up an irrevocable trust, it is essential to work with an estate planning attorney who can help guide you through the process and ensure that your trust is legally valid and binding. At The Terrell Law Firm, we have the knowledge you need to create a trust that meets your specific needs. Contact us today to learn more!