New York Estate Planning & Elder Law Blog
One of the most important goals in estate planning is making sure that your assets are properly passed on to your loved ones.
While irrevocable trusts at first glance might seem like they involve too much control, when utilized in the correct manner, they can be a valuable tool in making sure that your estate planning goals are achieved.
Even though we all want to do what is best for our loved ones, it is also important to make sure that they realize the full advantage of any assets that you might pass on.
Making Sure that Loved Ones Appropriately Spend Assets
As a result of a number of factors including poor money management skills and unhealthy addictions, some loved ones who might receive a lump sum of money through an estate could end up spending the amount all at once or reaching other undesirable goals. As a person engaged in estate planning, you should not feel bad about this. Instead, you should simply realize that not everyone is adequately equipped to deal with the receipt of a large amount of money.
In these situations, irrevocable trusts can provide an invaluable way to make sure that a beneficiary is able to use and receive funds in the most beneficial way possible. That is because these trusts can include limitations about how a beneficiary controls these funds.
Irrevocable Trusts Protect Assets
Irrevocable trusts are capable of protecting assets because funds are owned by the trusts rather than the beneficiary.
These trusts are also able to protect assets from a number of life occurrences that can deplete a person’s assets including divorces, lawsuits, and bankruptcy. These trusts also afford an individual protection against manipulative family members as well as friends.
The Creation of an Irrevocable Trust
A knowledgeable estate planning attorney can help you decide if an irrevocable trust is a good match for your current estate planning goals. To decide whether these trusts will benefit you, you will likely be required to provide some important information including what you hope to accomplish, which individuals might potentially act as trustee, and whether you ever want the trust to end.
To make sure that your estate planning goals are satisfied, it is important to be as direct and honest with your attorney as possible during the estate planning process.
Appointing a Responsible Trustee is Critical
A responsible trustee will be tasked with controlling assets that come out of your trust. This individual will be responsible with making certain that payments are made to each beneficiary.
In some cases, trustees might also have the ability to determine how much each beneficiary should receive, when it will be distributed, and under what terms. While anyone over the age of 18 is generally capable of functioning as a trustee, it is important to exercise caution and consideration in selecting an individual to fulfill this role.
Speak with an Experienced Estate Planning Lawyer
Irrevocable trusts are just one of the nuanced areas in estate planning law. If you have questions or concerns about the estate planning process, you should not hesitate to speak with an experienced attorney.
Contact Ettinger Estate Planning today to schedule a free initial case evaluation.