Benefits of Irrevocable
Irrevocable trusts can offer a range of benefits to both grantors and beneficiaries, which are why they are such a popular means of asset protection. Some of the main benefits are briefly discussed below.
Asset Protection from Creditors
Assets placed into a trust cannot be taken by creditors or those pursuing you in a lawsuit. They cannot be obtained for long-term care expenses. This is only true if the assets are already placed into a trust. Rapidly placing assets into a trust when you are being sued or when creditors already have claims against you is considered in Florida to be a fraudulent transfer of assets and is against the law.
Assets placed into an irrevocable trust cannot be counted as part of your estate. This can lower the value of your estate and help you, or your heirs, escape from heavy federal estate taxes. By selling assets in an irrevocable trust, the trust is considered as the seller, and pays any taxes, letting you avoid paying capital gains taxes on these sold assets. You may also fund a charitable trust while you are alive and receive tax deductions.
Other tax benefits exist for different trusts and these can be discussed further with an asset protection attorney from Mortellaro Law.