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Irrevocable Trusts

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Irrevocable Trusts

Are you concerned about becoming incapacitated or unable to communicate your wishes to legal counsel or loved ones? An irrevocable trust transfers your assets into a trust that can only be changed under certain limited circumstances. This is essentially the opposite of a revocable trust, which allows you to keep control over your assets. In addition to the peace of mind that an irrevocable trust allows, it also relieves your beneficiaries of paying expensive estate taxes and making estate planning decisions on your behalf.

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Advantages and Disadvantages of Irrevocable Trusts

What are the benefits of an irrevocable trust?

An irrevocable trust moves ownership of assets from your hands into a trust that can only be modified if the grantor and beneficiary allow it. This prevents your assets from becoming the property of the state or court, and you’re also relieved of tax liability of the assets in the trust if they generate income.

In addition to the protection provided by an irrevocable trust, there are other benefits that you need to be aware of.

  • An irrevocable trust allows you to take full advantage of the estate tax exemption by removing taxable assets from your estate.
  • You can also prevent misuse by beneficiaries by placing conditions on the terms of distribution.
  • You can retain income from assets even after gifting them or removing them from the estate.
  • Gifting your primary residence can also be done with more favorable tax rules.
  • Life insurance policies can be housed in an irrevocable trust. This removes the proceeds from your estate.

Are there disadvantages to a irrevocable trust?

Peace of mind and savings on taxes are the clear advantages of irrevocable trusts. But what about the disadvantages? Entering into an irrevocable trust essentially takes control of your assets out of your hands. However, there are a few other aspects that count as disadvantages, including:

  • An irrevocable trust becomes a separate taxable entity, meaning a trust can be taxed for earned income, and the trustee has to pay taxes out of the trust.
  • Trusts are eligible for the gift tax exemption, but only to a certain point. Gifts beyond a certain value can still be taxed.
  • The income tax rates on a trust are generally higher than the income tax on an individual.

How can I learn more about creating an irrevocable trust with an attorney?

Get additional details about how to start creating an irrevocable trust by scheduling a consultation with the team at LaCava Law Firm, LLC in St. Charles, IL. Estate planning attorney Michael LaCava will work to protect your assets and develop the irrevocable trust that suits your wishes and the way you want your assets distributed. Contact Michael by calling (630) 444-7504 or schedule a call today to start planning your estate with a revocable trust.
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How our estate planning process works

1

Initial Discovery Call

We walk you through the estate planning basics and explain and discuss those options in more detail with you during our initial discovery phone call. If you are ready to schedule this now, please click the Schedule A Call link below.
2

The Questionnaire

Once you decide to move forward, we educate ourselves about your needs based on a questionnaire that we provide to you. CLICK HERE to download.
3

The Simple Estate Planning Strategy Session

Once we review the forms you provide to us, we schedule a follow-up Simple Estate Planning Strategy Session to explain and discuss the best options available to you, so you can decide how to proceed.
4

Drafting

Once you decide on how you want to proceed, we draft your estate plan based on your wishes and present the drafts to you for review.
5

The Signing

Once you review and finalize the estate planning documents, you then sign the finalized estate planning documents and breathe a sigh of relief knowing that you have taken a major step in simplifying your end-of-life needs and goals.

Michael LaCava

Attorney  //  LaCava Law Firm, LLC

Born in Illinois and raised in Florida, Real Estate and Estate Planning Attorney Michael LaCava graduated from the University of Florida, Levin College of Law in 2013. During school and thereafter, Michael gained valuable experience in the areas of Criminal Law, Personal Injury, Family Law, Real Estate Law, and Labor and Employment.

In 2015, Michael resettled in Illinois with his family, and shortly thereafter founded LaCava Law Firm, LLC, and began serving the Fox Valley area and surrounding Chicagoland. In a short time, Michael earned an excellent reputation for his thoroughness, knowledge, accessibility, and professionalism.

Different in many ways from a typical attorney, Michael prides himself on his responsiveness, attention to detail, and the close relationships that he shares with his clients and other referring professionals. Specializing in estate planning and real estate transactions, Michael has successfully helped over a thousand clients with their needs.

michael@lacavalawfirm.com(630) 444-7504
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Michael LaCava Attorney

LaCava Law Firm, LLC is dedicated to providing affordable, responsive, and personal service to each client.

Our commitment to each client remains consistent, we treat each client with the professional attention and service they deserve, without cutting corners. The results of that dedication are evident in the reputation we have built. Our clients love us for good reason, we deliver and provide the level of service we promise.

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