Some estate planning tools offer you more protection and long-term benefits than others. One of the most powerful tools available is an irrevocable trust. At the Law Office of Carey Thompson, PC, we help individuals and families in Fort Worth create carefully designed irrevocable trusts to protect assets, manage taxes, and support loved ones for generations to come.
If you’re considering adding an irrevocable trust to your estate plan, we’ll help you understand your options and guide you through the process with clarity and care. Contact us today to get started.
What Is an Irrevocable Trust?
An irrevocable trust is a type of legal arrangement where assets are transferred out of your ownership and placed into the trust. Once the trust is created and funded, you generally cannot change it, amend it, or dissolve it — hence the term “irrevocable.”
Because you no longer own the assets directly, they are typically removed from your taxable estate and may be shielded from creditors, lawsuits, and certain taxes. The trust is managed by a trustee you appoint, according to instructions you provide when the trust is set up.
Irrevocable trusts can serve many different purposes, from protecting wealth to supporting family members with special needs.
Benefits of an Irrevocable Trust
Although giving up control can feel like a big step, an irrevocable trust offers valuable benefits, such as:
- Asset Protection: Assets placed into an irrevocable trust are usually shielded from lawsuits, creditors, and divorces.
- Estate Tax Reduction: By removing assets from your estate, you can minimize or eliminate estate taxes.
- Medicaid Planning: Properly structured irrevocable trusts can help you qualify for Medicaid while preserving assets for your family.
- Supporting Loved Ones: You can provide for minor children, individuals with disabilities, or family members who may need help managing money.
- Charitable Giving: Certain irrevocable trusts can be structured to benefit philanthropic organizations while offering tax advantages.
Our team will work with you to understand your goals and determine whether an irrevocable trust is the right fit for your overall estate plan.
Common Types of Irrevocable Trusts
Depending on your needs, different types of irrevocable trusts may be appropriate. Some of the most common include:
- Irrevocable Life Insurance Trusts (ILITs): Remove life insurance proceeds from your taxable estate.
- Special Needs Trusts: Provide for a disabled loved one without jeopardizing their eligibility for government benefits.
- Charitable Trusts: Support charities while gaining income or estate tax advantages.
- Asset Protection Trusts: Shield assets from potential creditors or lawsuits.
Each type of trust has specific requirements and benefits. We’ll help you select the structure that best matches your personal and financial objectives.
Essential Considerations Before Creating an Irrevocable Trust
Because an irrevocable trust involves giving up ownership and control of your assets, it’s important to understand a few key points:
- Loss of Flexibility: Once assets are transferred, you generally cannot reclaim or modify them.
- Careful Planning Is Needed: Mistakes in creating or funding the trust can have serious legal and tax consequences.
- Trustee Selection Matters: Choosing a reliable and trustworthy individual or institution to manage the trust is critical.
- Coordination With Other Estate Planning Tools: An irrevocable trust should work hand-in-hand with your will, powers of attorney, and other documents.
At the Law Office of Carey Thompson, we take the time to walk you through every step so that you can feel confident about your decisions.
How We Can Help You Create an Irrevocable Trust
When you work with our firm, you can expect personalized attention and practical legal advice tailored to your situation. Our Fort Worth trusts and estates attorneys can assist you by:
- Identifying whether an irrevocable trust is the right solution for your goals
- Explaining the different trust options in plain English
- Drafting a customized trust agreement based on your instructions
- Helping you properly transfer assets into the trust
- Advising you on trustee selection and long-term management
We understand that setting up an irrevocable trust is a significant decision. Our role is to make the process as smooth and understandable as possible.
Plan With Confidence
An irrevocable trust can offer you peace of mind, knowing that your assets are protected and your loved ones are cared for. If you’re ready to explore whether an irrevocable trust is right for you, contact the Law Office of Carey Thompson today. We’ll help you build a strong foundation for your future.