Coral Gables Irrevocable Trusts Lawyer

Irrevocable trusts are advantageous because, in addition to protecting your assets, they save you from burdensome federal estate taxes. They also allow your estate to avoid probate upon your death, so assets are distributed more quickly than those contained in a will, and the details are private. 

The parties involved in irrevocable trusts include the person who sets up the trust and deposits assets (the grantor); a person, group, bank, or company that manages the trust (a trustee); and those who receive the assets upon the grantor’s death (the beneficiaries). As a skilled trusts attorney can tell you, the most important element of irrevocable trusts is that the grantor gives up ownership rights to the trust and its assets once it is established. To learn whether this estate planning tool can benefit you, contact a Coral Gables irrevocable trusts lawyer now.

Tax Exemptions

There is federal tax exemption for estates and lifetime gifts, though the threshold level can be changed based on acts from Congress. Irrevocable trusts allow grantors to deposit assets that exceed tax exemption thresholds and reduce their tax burden, thus preserving hard-earned wealth for the next generation. Because grantors no longer own the assets in these trusts, they are generally protected from creditors and litigation – something that is not true of revocable trusts. 

A seasoned estate planning attorney could explain more about tax exemptions and how an irrevocable trust in Coral Gables can help a grantor reduce their tax liability.

Florida’s Additional Protection for Named Beneficiaries

There are two provisions contained in irrevocable trusts that shield assets: spendthrift and discretionary distribution protection. 

Spendthrift provisions prevent named beneficiaries from giving away their rights to assets as granted in the trust. The clause prevents creditors from forcing beneficiaries to assign their rights to creditors to satisfy debts.

Discretionary distribution protection requires trustees to maintain a reasonable schedule for the distribution of assets to beneficiaries, including the timing and amount disbursed. Creditors cannot compel trustees to disburse assets that leave beneficiaries at the whim of creditors. A lawyer in Coral Gables could help set up an irrevocable trust to shield assets and ensure they end up in the proper hands.

Explore the Potential of Irrevocable Trusts With a Coral Gables Attorney

Irrevocable trusts can be beneficial in many ways. You can set up a trust to receive your life insurance policy and the proceeds could allow your heirs to carry on the business you worked so hard to build. You can protect assets for future beneficiaries to ensure they are not sold for tax purposes or to enrich creditors who are not permitted to force distribution. 

Veliz & Associates, P.A. is a local law firm and we have been your neighbors for years. A Coral Gables irrevocable trust lawyer can sit down with you and discuss how this option can benefit you and your loved ones.