Understanding An Irrevocable Trust In Oklahoma
An irrevocable trust is a contract whereby and wherein the trust maker can assert certain controls that will omit the ability to make changes in the future. An irrevocable trust will also require the trust maker to give up some control over the use of the assets in the trust. Such a trust can be a significant asset when you are planning for future challenges such as potential disabilities, potential nursing home residence, the possibility of a disabled beneficiary, the potential harm that could come from a divorce involving your children, grandchildren, or other beneficiaries. These irrevocable trusts can even be used in certain instances to reduce inheritance taxes.
At the option of the trust maker, irrevocable trusts may include (or not include) a wide variety of powers and protections and there is no single version suitable for every person and every situation. If you are concerned about the potential of you or your heirs or losing assets to creditors or predators, the irrevocable trust can represent a substantial firewall of protection between your assets and those risks.
Certain irrevocable trusts allow you to continue to receive the income created by the trust for so long as you desire and yet that trust can still protect the principle (the underlying assets that are creating that income). In such a trust, you might place income-generating assets such as rental properties or mineral rights. If you need to or want to live off the income you will need to make this desire known to us when we are preparing your trust in order to assure that your income stream stays in place as you have planned.
Contrary to popular opinion, it is not necessary that you give up all control and all benefit in order to have value from your irrevocable trust. If you would like more information on the irrevocable trust, consider joining us for an estate planning workshop wherein I go in more detail concerning the uses of an irrevocable trust.
The Benefits And Limitations To An Irrevocable Trust In Oklahoma
One of the primary benefits of an irrevocable trust is the potential to have asset protection for those things that you own. Many of my clients are concerned that they could lose their assets to lawsuits, medical bills, or nursing home expenses. An irrevocable trust can be useful in assuring that you can still provide benefits and support to your family even if you are otherwise devastated from an unforeseen lawsuit or an unexpected health setback.
Everything has a price and one of the prices involved with an irrevocable trust is that the trust maker must give up a certain portion of his or her control. For example, if a trust maker maintains absolute control and has the ability to take the funds out of the trust and use them for himself for any purpose (say a trip to Jamaica) then those funds will be equally available to his creditors and predators. Therefore, the trust maker must impose some limitation upon himself in order to achieve any asset protection.
For more information on Irrevocable Trusts In Oklahoma, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (405) 754-4166 today.
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