What is an irrevocable trust?
An irrevocable trust is a type of trust in which the terms of the trust cannot be changed or revoked once it has been created. This type of trust is commonly used in Washington to pass on assets to beneficiaries, as it offers more protection from creditors and estate taxes. An irrevocable trust is created when the trustor (creator) of the trust transfers property to a trustee in order for the trustee to distribute to the beneficiaries, according to the trustor’s wishes. By creating an irrevocable trust, the trustor gives up any control over the trust’s assets and may not make any changes once the trust has been established. The trustor may specify the terms of the trust in the trust document, such as when the beneficiaries will receive their assets, the amount of the distributions, and any conditions that need to be fulfilled by the beneficiaries before they can access the assets. The trustee of the trust is responsible for managing and distributing the trust’s assets according to the trustor’s wishes. An irrevocable trust can help protect assets from creditors and estate taxes, as the assets are no longer considered part of the trustor’s estate. Additionally, assets in an irrevocable trust are excluded from the trustor’s taxable estate. This type of trust is also useful for providing for disabled individuals or children, as it allows the trustor to securely pass on assets without having to worry about them being abused or mismanaged.
Related FAQs
What is the difference between a trust deed and a deed of trust?What is involved in a step-up in basis?
What is a marital deduction trust?
Can a will be changed or revoked before death?
What is the time frame for distributing assets in an estate?
What is a revocable living trust?
What is a no-contest clause in a will?
What is anancillaryadministration?
How do trusts avoid probate?
What are the options for distributing trust assets after the death of a beneficiary?
Related Blog Posts
Understanding the Basics of Inheritance Laws: A Guide to Successfully Navigating State and Federal Statutes - July 31, 2023How to Ensure Your Estate Plan Reflects Your Wishes Through Inheritance Laws - August 7, 2023
Protect Your Rights as a Beneficiary: Understanding Your Legal Rights After Beneficiary Inheritance - August 14, 2023
Comprehending the Duties and Responsibilities of Executors of Estates: How to Properly Administer an Estate and Fulfill Inheritance Law Requirements - August 21, 2023
Maximizing the Benefits of Inheritance Law for Family Heirs of Estates - August 28, 2023