Tampa Irrevocable Trust Attorney

In Florida estate planning, revocable living trusts are a common tool used to help individuals transfer their assets outside of the normal probate process. A revocable trust, however, does not shield assets from a person’s creditors. And in the case of high net-worth individuals, assets in a revocable trust can still count as part of their taxable estate for federal gift and estate tax purposes.

So there are some estate planning situations where it makes sense to create an irrevocable trust. A qualified Tampa irrevocable living trust attorney can assist you in establishing such trusts. Knudsen Law is a full-service Florida estate and probate firm that helps clients in determining whether an irrevocable trust is right for their family and finances. We understand the importance of securing your assets with a well-structured irrevocable trust. Our experienced team will guide you through the process, ensuring your trust aligns with your specific goals and needs.

Why Would You Create an Irrevocable Trust in Florida?

As the name suggests, an irrevocable trust is one that cannot be amended, modified, or revoked by the grantor once it is established. Essentially, this means that any property transferred by the grantor to the trust is now effectively owned by the trustee. There are several reasons why a grantor would do this:

• Creditor Protection: If someone has a judgment against you, or a person you wish to name as a beneficiary of your trust, a revocable living trust provides no protection. The creditors can go after those assets as they are still effectively owned by you. If the assets are in an irrevocable trust, however, they cannot be touched. You can also include “spendthrift” provisions in an irrevocable trust to prevent your beneficiaries from squandering any inheritance you leave them.
• Estate Taxes: Assets in a revocable living trust can still be considered part of your taxable estate for purposes of calculating federal gift and estate tax liability. For this reason, you may wish to place certain assets–such as a life insurance policy–in an irrevocable trust, which will not be counted towards your taxable estate.
• Government Benefits: Many public assistance programs, such as Florida Medicaid, limit the amount of assets that a recipient may own. Transferring assets to an irrevocable living trust can help you legally deplete your property to ensure eligibility. Similarly, if you wish to provide for a beneficiary who requires such benefits, you can establish an irrevocable special needs trust to protect their eligibility.

Grantor’s Surrender of Control

In an irrevocable trust, the grantor permanently transfers ownership and control of the trust assets to the trustee. This means the grantor can no longer unilaterally modify or revoke the trust, creating a secure and reliable arrangement.

Asset Protection

Assets held within an irrevocable trust are generally shielded from creditors and legal claims, as they are considered separate from the grantor’s personal assets. This added layer of protection safeguards your wealth from potential risks and lawsuits.

Estate Tax Reduction

By transferring assets into an irrevocable trust, the value of those assets may be excluded from your taxable estate. This can potentially reduce estate taxes upon your passing, benefiting your loved ones and preserving more of your wealth.

Medicaid Planning

Utilizing an irrevocable trust can be a valuable tool for Medicaid planning. By transferring assets into the trust, you may be able to preserve the value of those assets and still qualify for Medicaid benefits.

Charitable Giving

Irrevocable trusts are excellent vehicles for charitable giving. Charitable remainder trusts (CRTs) and charitable lead trusts (CLTs) enable you to support charitable organizations while potentially receiving tax benefits.

Trustee’s Duties

The trustee of an irrevocable trust has the vital responsibility to manage the trust assets and carry out the provisions outlined in the trust document. They are bound to act in the best interests of the beneficiaries and diligently follow the terms of the trust.

Contact an Experienced Tampa Irrevocable Living Trust Attorney Today

An irrevocable living trust is not something you should create without careful consideration. Remember, once an asset is placed in an irrevocable trust, you cannot simply change your mind and take the property back. At the same time, the protections offered by an irrevocable trust can benefit you and your family in the long run, so long as it is properly structured. This is why it is critically important to work with an experienced Tampa irrevocable living trust lawyer who can walk you through the process and explain all of your options.

If you would like to speak with an attorney as soon as possible, contact Knudsen Law today at (727) 398-3600 to schedule a consultation.