On behalf of Kadish & Anthony Law Group posted in Estate Planning For Business Owners on Friday, November 15, 2019.
One of the primary things that some people want to establish with their estate plan is protection of the assets from creditors. Establishing an irrevocable trust is one way that you can do this. You should carefully consider the terms of the trust because once you establish it, you can’t change it if it is an irrevocable trust.
When you create the irrevocable trust, you don’t have control over the assets any longer. The assets are managed by a trustee until the time when the beneficiary can receive the assets. There are a few exceptions to the rule about not being able to change things about the trust, so make sure that you fully understand what you are doing when you open the trust.
A primary benefit of the irrevocable trust is that you don’t have to worry about creditors staking claim to it. The assets in the trust are protected from creditors, so you can rest assured that your loved ones will be the ones who benefit from this.
Business owners sometimes choose irrevocable trusts to care for more than their family members. You might choose to do this to help trusted employees once you pass away. Make sure that you understand the ramifications of this choice if you opt to handle the situation in this manner.
Another benefit of using a trust to distribute assets is that these are usually handled without the need for probate court. This keeps the contents of the trust and what the beneficiaries will receive out of the public eye, which is a primary consideration for some people who have high asset cases and don’t want the beneficiary’s information to be made public.