As a resident of Oklahoma who is looking to get your affairs in order, you may be giving some thought to how to make the best use of your assets after your passing. You may, too, be considering what methods you might use to preserve as much of your wealth as you can for your loved ones, and the term “irrevocable living trust” may come up during the process.
Just what is an irrevocable living trust, and would it benefit you to establish one? Per the Motley Fool, an irrevocable living trust is a fiduciary arrangement that can come with many benefits, although it does require that you give up some power and place it in the hands of a trustee. This type of trust, as the name implies, is not one you can change once you create it, but if you are able to accept that, know that there are many ways in which it can work in your favor.
Arguably one of the biggest benefits of creating an irrevocable living trust is that the assets you add into it do not factor in when determining the complete value of your estate. In other words, by establishing this type of trust, you can potentially save your loved ones and beneficiaries considerable money in estate taxes.
This type of trust also gives you legal protection in the unfortunate event that someone sues you, or files a judgment against you, by acting as something of a shield. While creditors may be able to go after other assets, they will not typically be able to touch those that you place into your trust. An irrevocable living trust also allows you to leave assets to beneficiaries on a conditional basis, which may be advantageous if you have a beneficiary who has, say, a substance abuse or spending problem.
This copy is educational in nature and does not constitute legal advice.