An irrevocable trust may ensure that you don’t lose key assets to creditors, a spouse or other parties. However, it’s important to note that you’ll effectively lose control over any items that are placed in such a trust. Furthermore, there is a chance that a Florida judge could invalidate the document if it isn’t constructed properly.
The key benefits of an irrevocable trust
This type of trust is meant to ensure that your property is safe from creditor claims, from a divorce settlement or from being seized by the government. Furthermore, trust assets generally aren’t subject to state probate laws, which means that your final wishes will likely be carried out in a timely manner after you pass. Finally, an irrevocable trust may be ideal if you plan on making gifts to family members, friends or charitable organizations while you’re still alive.
The potential drawbacks of an irrevocable trust
Generally speaking, you aren’t allowed to be a beneficiary and trustee of this type of estate planning tool. It’s also important to understand that the terms of the document typically can’t be changed once they go into effect. An attorney who has experience drafting trusts & wills may be able to help you determine if you truly need an irrevocable trust.
If you have any questions about your estate plan, it may be a good idea to consult with an attorney. He or she may be able to review existing plan documents or provide more information about other tools that might meet your needs. A legal adviser might also help you revise, revoke or replace a document in accordance with state law.
