Irrevocable trusts lock you out of your own money and can't be changed, but they shield assets from creditors and lawsuits, remove wealth from your taxable estate, and may protect Medicaid eligibility. The trade-offs matter depending on your situation.
I've seen enough misinformation on TikTok about irrevocable trusts that I thought it would be good to come on and give you the good, the bad, and the ugly about them. Irrevocable, irrevocable, whatever, I say it both ways. Bad thing, they're irrevocable. You can't change them. Actually, you can change them, but it's very, very difficult to do so. Bad thing too, you lose control of the asset. Once you put it in, it's no longer yours. It's no longer in your name. You have no access. You don't want to put money in that you need to live on. Bad thing, the assets you put in there generally don't get a step-up in basis like they do in a revocable trust. Four, they cost more. They're very complex and specific to need. Good things: you get protection from creditors, ex-spouses, lawsuits. Good thing: if you have a large estate, you're taking that asset out of your estate. Depending on what the federal exemption is at the time you die, that may be important. Good thing: you can get protection from Medicaid if you need it. They are very complex, and I'm the only person alive who can explain them. Not really, but follow me anyway.
comment workshop.free still need plan to keep people out of court. learn how to in less than an hour
