This is when you need an Irrevocable Trust

17 Feb 2023 · 1 min

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In this short explainer, the presenter outlines the three specific situations where establishing an irrevocable trust is appropriate. First, individuals with very high net worth—over $12 million for a single person or $24 million for a couple—may use an irrevocable trust for tax advantages. Second, those who need to preserve eligibility for government benefit programs, such as Medicaid or benefits for a disabled child, can shield assets in an irrevocable trust. Third, people seeking protection from lawsuits or creditors should consider an irrevocable trust because the assets are owned by the trust, not the individual. The speaker contrasts this with a revocable trust, which is sufficient when the only goal is to avoid probate for heirs. The video ends with a call to action to follow for more estate‑planning information.

Chapters

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.