Only 3 reasons why you would need an irrevocable trust

15 Jul 2022 · 1 min

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An irrevocable trust makes sense for three situations: net worth over $12 million for tax benefits, protecting Medicaid or disability eligibility by removing assets from the beneficiary's name, or shielding assets from lawsuits and creditors. If you just want to avoid probate, use a revocable trust instead.

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There are only 3 reasons why you or anyone else would ever need an irrevocable trust. Once you put money or property into an irrevocable trust, you no longer own it. The trust does. Reason number 1, you've got a lot of money. If you're a single person with more than $12 million or a couple with more than $24 million, then you might need a type of irrevocable trust that would benefit you from a tax standpoint. Reason number 2, you're trying to protect government benefits. If you have a child with disabilities that's on government benefits, Or if you expect that you may need Medicaid benefits for long-term care, an irrevocable trust would help in those situations. Last, if you need protection from lawsuits or creditors, an irrevocable trust is the way to go. But if all you want to do is protect your heirs from getting caught up in the probate process when you die, you need a revocable trust. Hit the follow button and you'll find out all there is to know about this.