Those in Pittsburgh who want to set up a trust to leave behind for their loved ones after they pass may have heard about irrevocable trusts. Learning more about this type of trust can help when planning an estate.
An irrevocable trust is a type of trust that gives protections to the creator of the trust. The terms of the trust are unable to be modified after finalization. This prevents beneficiaries from changing the trust and can also protect the trust against being taken in a lawsuit. Life insurance policies, securities, cash, interest in business and real estate may all be used to fund an irrevocable trust.
In exchange for these protections, the creator of the trust gives up certain benefits. An irrevocable trust may not be altered without the permission of the beneficiaries. This makes it difficult to change an irrevocable trust after it has been finalized. Additionally, the creator agrees to completely give up the assets funding an irrevocable trust and relinquishes any ownership rights. Irrevocable trusts are often used by professionals who are at a higher-risk of a lawsuit, such as doctors and other medical professionals, who want to pass on their estate to their heirs without the risk of it being taken during legal action.
Planning an estate is what many believe to be a final act of love for their family, helping them to have the necessary finances after death. An estate attorney or family lawyer may be useful when making estate plans. In this case, a lawyer might be able to help an individual who is at-risk of legal action set aside money for his or her family by preparing an irrevocable trust. Once the trust is funded and finalized, the beneficiaries named in the trust will be able to access the money after the creator has passed away, securing the legacy of the family.