Nashville Irrevocable Trust Attorney
Estate Planning and Irrevocable Trusts in Nashville
There are many different types of trusts that serve different purposes. For some people or couples, the establishment of an irrevocable trust could be part of a comprehensive estate plan, protecting your assets, and allowing those you love to gain the benefit of your years of hard work. As a Nashville estate planning lawyer, I have great insight into the various types of trusts, and can meet with you to discuss your needs and wishes with regard to your estate. It may be beneficial in your case to establish an irrevocable trust. I invite you to meet with me, attorney David Whittaker, and I can advise you of your options. Protecting those we love is extremely important, and based upon your situation, it may be beneficial for you to include an irrevocable trust as part of a comprehensive estate plan.
About Irrevocable Trusts: The Benefits
An irrevocable trust cannot be revoked once established. It also cannot be amended or altered in any way. In estate planning, an irrevocable trust is a tool that can be beneficial, both for you and for your loved ones. You have the right to gift a certain amount each year, which can reduce the value of your estate for tax purposes. Some people, in planning for the future, rather than gifting cash, place the gift into an irrevocable trust. This allows the money to build up during your lifetime. There can be significant tax savings, as assets in an irrevocable trust are not part of your estate once the trust is established. Another advantage is that the assets in the trust are no longer held by you as an individual, but are owned by the trust, and in most cases, cannot be accessed by creditors who want to have their final bills paid upon your passing.
Types of Irrevocable Trusts
An irrevocable trust is essentially used to protect property and reduce taxes. There are many types of irrevocable trusts that have tax benefits, including the following:
- Charitable Trusts, which will reduce estate and income taxes through gifts to charity;
- QTIP Trusts, which postpones the payment of estate taxes until the last remaining spouse dies;
- QDOT Trusts, which is the same as a QTIP Trust, for non-citizens;
- Grantor-Retained Interest Trusts that remove property from a taxable estate to reduce estate taxes;
- Life Insurance Trusts that remove the proceeds from a taxable estate and thus reduce estate taxes
- Generation-Skipping Trusts, which reduces estate tax by naming a grandchild or multiple grandchildren who don't own the property as the final beneficiary;
- Bypass Trusts, which reduces estate taxes when the second spouse dies by putting the majority of the property of the first spouse who dies into the trust. The surviving spouse can use the property in the trust, but the trust continues to own those assets.
Irrevocable trusts that are established to protect property include the following:
- Spendthrift Trusts, which allows you to control and protect inheritance given to those who are not capable at managing them on their own;
- Special Needs Trusts, which allows you to provide financial support for a person with special needs, and is often established so the person can become or remain eligible for government benefits such as Medicaid.
Contact me for more information about irrevocable trusts and other estate planning questions and concerns.