Plan Your Estate with an Irrevocable Trust Lawyer in Pennsylvania

Irrevocable trusts are a powerful estate planning tool. As a certified irrevocable trust lawyer will explain in detail, they are legal tools used for asset protection and tax avoidance. If you’re trying to get your estate in order, you should contact an estate planning attorney for advice on how to proceed. 

A Pennsylvania irrevocable trust involves holding property for the benefit of one or more family members. The person who creates the trust is called the settlor and they have full control over who the beneficiaries of the trust will be. The settlor deposits property into the trust and it is distributed according to their written instructions. 

Revocable Trust vs. Irrevocable Trust: What Is the Difference?

Many clients who meet with irrevocable trust attorneys want to know: what is the difference between a revocable and an irrevocable trust? Let us start with quick definitions. A revocable trust is created by a person who wants to make provisions for their own future. An irrevocable trust has the role of placing assets under protection for the benefit of the beneficiary (usually a legal heir).

Irrevocable trusts can’t be easily changed. Often, trusts that are set up for asset protection require the approval of a third party. In contrast, the settlor can change a revocable trust at any time. 

There are several reasons why individuals choose irrevocable trusts over revocable trusts. It’s important that you meet with an estate planning lawyer to discuss the difference between a revocable and an irrevocable trust, as well as the various types of irrevocable trusts. That way, you can get a legal arrangement that truly meets your needs. 

Types of Irrevocable Trusts Recognized by the Law

The best Pennsylvania irrevocable trust lawyer will help you select the adequate type of trust that meets your intentions and wishes. We will make sure that everything is done according to the law in our state.

But what types of irrevocable trusts are available? Here are the most common examples:

• Retirement trust – allows the settlor to control how the assets held in the Individual Retirement Account are distributed after they pass away
• Qualified domestic trust – if the surviving spouse is not a US citizen, this type of trust allows them to avoid paying taxes on sizable assets inherited from the deceased US citizen spouse
• Irrevocable life insurance trust – the settlor places all the funds accumulated in the life insurance policy account into a trust, and the trustee will handle the distribution of the proceeds to beneficiaries after the settlor’s death
• Intentionally defective grantor trust – appreciating assets are frozen in order to remove them from the settlor’s estate and minimize the estate taxes their heirs would have to pay
• Qualified personal residence trust – the personal residence is removed from the estate in order to reduce the taxable estate value. The settlor will continue to live in the respective residence rent-free.
• Beneficiary defective inter-vivo trust – this type of trust is usually created by parents for the benefit of their child (the irrevocable trust attorney’s client)
• Grantor retained annuity trust – individuals and families can pass assets to their heir using little or none of their lifetime federal gift and estate tax exclusion.

What Are the Advantages of an Irrevocable Trust?

Irrevocable trusts are no longer just for the wealthy. Anyone can access the protection they offer. When you transfer your ownership of an asset to the trust, for legal purposes, it no longer belongs to you.  

As a result, there are several primary benefits of an irrevocable trust: 

• Reduced estate taxes
• Protection from creditors
• Ability to distribute assets to any beneficiary, irrespective of the provisions of probate law.

By transferring assets to a trust, your creditors won’t be able to access them and they will no longer be part of your taxable estate.  

Irrevocable trusts aren’t all the same. They’re flexible, and your irrevocable trust attorney can come up with an arrangement that addresses your unique situation. 

Get in Touch with Miller Law Firm, P.C.

If you’re looking for a specialist in Pennsylvania irrevocable trust for your case, an experienced lawyer at Miller Law Firm, PC. is ready to assist you. You will be advised by a skilled attorney, with years of experience in asset protection, elder law and estate planning.

The best irrevocable trust lawyer has the main service area in:

• King of Prussia, PA 
• Lebanon/Lancaster, PA 

We also serve clients in Reading, PA, and neighboring locations. Reach out today: 855-936-3886!