Irrevocable trusts can be asset preservation powerhouses

Estate planning is about much more than wealth distribution. It helps ensure that assets reach the intended recipients. You may fear heavy tax burdens will rob your loved ones of their inheritance, but that isn’t the only threat. Making asset preservation part of your estate planning efforts can protect your legacy. An irrevocable trust is one tool that can help you reach your goals. What could threaten your assets upon passing? As mentioned, tax obligations can quickly eat away at your estate after your death, leaving little for your heirs. Other possible threats to consider include: Lawsuits targeting your estate Creditor claims for unpaid debts Disputes among your beneficiaries Asset protection strategies help to shield and preserve your estate, providing a more secure inheritance for your heirs and future descendants. What is an irrevocable trust? One powerful tool for asset protection is the irrevocable trust. As the name suggests, once established, its provisions are typically unchangeable. Transferring ownership of assets to the trust removes them from your personal holdings, potentially protecting them from creditors. Who can benefit from an irrevocable trust? Just about anyone, but some people may need this asset protection more than others. Business owners and professionals with a high risk of lawsuits (like doctors and real estate developers) often rely on irrevocable trusts to minimize threats. Individuals needing to reduce their assets and estate size to be eligible for government benefits programs like Medicaid also use irrevocable trusts to reach their goals. With experienced legal guidance, you can determine whether an irrevocable trust can bolster your existing estate plan and secure your legacy. You can also find out more about other estate planning tools that may help preserve your assets.The post Irrevocable trusts can be asset preservation powerhouses first appeared on Standard & Berry, PLLC.