25 Kenoza Avenue Haverhill, MA 01830

Phillips, Gerstein & Channen, LLP

Call Today

978-374-1131

  • Welcome
  • Firm Overview
  • Reviews
    • Client Reviews
    • Write A Review
  • Attorney Profiles
    • Michael A. Gerstein
    • Russell S. Channen
  • Practice Areas
    • Business Law
    • Civil Litigation
    • Estate Planning
    • Personal Injury
    • Real Estate Law
    • Tax Law
  • Legal Blog
    • Articles
    • Case Results
  • Contact
  • Welcome
  • Firm Overview
  • Reviews
    • Client Reviews
    • Write A Review
  • Attorney Profiles
    • Michael A. Gerstein
    • Russell S. Channen
  • Practice Areas
    • Business Law
    • Civil Litigation
    • Estate Planning
    • Personal Injury
    • Real Estate Law
    • Tax Law
  • Legal Blog
    • Articles
    • Case Results
  • Contact

Trusts: Revocable Vs. Irrevocable

Homepage > Estate Planning > Trusts: Revocable Vs. Irrevocable
17598-Trust (1)
Trusts: Revocable Vs. Irrevocable

The Fundamentals of Trusts

Trusts: A Powerful Tool for Protecting Wealth

Despite what the term “trust fund baby” would suggest, trusts are not just for billionaires, celebrities, or old-money families. Trusts are a powerful tool for protecting wealth, both during life and following one’s passing, even for people of less-than-Vanderbilt means.

When a trust is set up, wealth—be that cash, real estate, or other assets—is removed from the control and management of you, the grantor, and put under the fiduciary care of a third party, the trustee or trustees. A trustee may be an individual, individuals, or a financial institution. Beneficiaries of a trust may be allowed to use the assets held in trust and/or may receive payments out of the trust’s income. It is possible for the grantor to be a beneficiary of a trust, as in the case of persons who set up trusts to help pay for their long-term nursing and care costs, but the grantor will have no role in the management or distribution of funds to his or herself.

By removing this wealth from your control, you can ensure that your property is taken care of even after your death. Additionally, a trust reduces your estate tax liability.

There are two basic kinds of trusts: revocable and irrevocable.

Revocable Trusts

A revocable trust gets its name in that it may be altered or dissolved at any point before the grantor’s death. While a revocable trust has the benefit of keeping your affairs out of probate, preserving your privacy, these trusts are not designed to reduce tax liability. This is because, due to their revocable nature, it is possible the property can return to the direct control of the grantor, making a tax break unfair.

Upon a grantor’s death, the trust becomes irrevocable and instructions for distributing the trust’s assets go into effect.

Irrevocable Trusts

In contrast to a revocable trust, an irrevocable trust can never be altered or dissolved following its creation. The assets held in trust remain forever out of the control of the original grantor. These trusts are suitable for people looking to fund their nursing home expenses, care for substantial real estate holdings after ill health precludes them from doing so, or who want to minimize their estate tax liability for their families.

Safeguarding Your Legacy

If you have complex or substantial assets, a trust can be an important tool in your estate-planning toolkit—but it can be daunting to know where to begin. Our experienced estate-planning and trust attorneys are here to help. With years of experience in assessing estates and designing plans to protect wealth for families, we can determine your particular needs and the best course of action to safeguard your interests.

Contact our office to discuss what kind of trust may be right for you.

estate planning irrevocable trusts Revocable trusts
Previous StoryPetition to Partition For Unmarried Couples – When One Does Not Want To Sell The Home
Next StoryHome Improvement Contracts: What Does Prompt Payment Mean?
Call (978) 374-1131

Categories

  • Articles
  • Business Law
  • Estate Planning
  • Family Law
  • News & Updates
  • Personal Injury
  • Real Estate Law

Tags

Adverse Possession alimony alternative dispute resolution Auto Accident Business Contracts Business Formation Business Law Car Accidents child custody Child Support Co-Parenting Contracts Coronavirus COVID-19 Divorce estate planning Family Law Home Improvement Contracts injury irrevocable trusts Landlord landlord tenant Last Will and Testament Legal Entities Litigation LLC Marijuana Law Massachusetts Massachusetts Business Law Medical malpractice Noncompete Agreements Personal Injury premisis liability prenuptial property division real estate Real Estate Law Revocable trusts Slip and fall Sole Proprietorship Spousal Support tax implications Visitation Wrongful Death Wrongful Death Claim

Contact Us

(978) 374-1131

(978) 372-3086

25 Kenoza Avenue
Haverhill, MA 01830

Phillips, Gerstein & Channen, LLP is a law firm in Haverhill, Massachusetts. Our firm represents clients from Massachusetts cities throughout Merrimack Valley including Andover, North Andover, Boston, Methuen, Newburyport, Lawrence, Gloucester, Merrimac, Amesbury, Lowell, Groveland, West Newbury, Georgetown, and Rowley, and New Hampshire cities including Salem and Plaistow. We represent clients in Essex County, Middlesex County, and Suffolk County in Massachusetts and Rockingham County and Hillsborough County in New Hampshire.

© 2018 by Phillips, Gerstein & Channen, L.L.P. All rights reserved. Disclaimer | Site Map | Privacy Policy | Marketing by Bardorf Legal Marketing

Email Us
close slider

Get A Case Evaluation

We are happy to provide a consultation to all first time clients.

Please complete the form below and we will contact you.

Call Now Button