What is an irrevocable trust?

An irrevocable trust is a legal arrangement whereby an individual or organization (the grantor) transfers property to another individual or organization (the trustee) to hold and manage on behalf of a third party, referred to as the beneficiary. The property is held and managed by the trustee in a fiduciary capacity, which means that the trustee is required to act in the best interests of the beneficiary at all times. Once established, an irrevocable trust cannot be modified or terminated without the explicit consent of the beneficiary. In North Carolina, irrevocable trusts are commonly used in elder law, as a way for seniors to protect their assets and provide for their future care. The trust provides a way to ensure that their financial needs will be taken care of, even if they become incapacitated. A well-crafted irrevocable trust can also help seniors preserve their assets in the event of a family dispute or long-term Medicaid planning. Irrevocable trusts also provide a way for individuals to transfer assets to their beneficiaries, without the assets passing through the probate process. This can save the estate time and money, and can also help ensure that the assets are used as intended, avoiding potential disputes between heirs. When creating an irrevocable trust, it is important to understand the legal implications of your decisions and to involve experienced legal counsel. An experienced attorney can help ensure that the trust is properly established and that it meets all the legal requirements necessary to protect your assets and ensure that they are used in accordance with your wishes.

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What is an irrevocable trust?

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