At Unique Estate Law, we regularly advise clients on trusts, including irrevocable trusts. This estate planning tool can help you achieve several objectives, such as protecting your assets, planning for incapacity, leaving a charitable legacy, and preserving your wealth. Given the complex laws and rules governing trusts, working with an experienced trusts and estates attorney is essential.
With a comprehensive knowledge of the Minnesota Trusts Code, we have the skills and experience to guide you through the process of establishing an irrevocable trust. By understanding your circumstances, we will work to help you achieve estate planning objectives.
Contact our office today to consult with an experienced irrevocable trust attorney.
What Is An Irrevocable Trust?
Trusts fall into two primary categories: revocable and irrevocable. When you create a revocable living trust, you transfer ownership of your property to it but retain the ability to manage these assets while you’re still around. It eliminates the need for probate because the assets are not directly in your name.
On the other hand, an irrevocable trust is established during your lifetime, but it cannot be amended, modified, or revoked. Once you move assets into this trust, they stay there for good. As the person creating the trust (known as the “grantor”), you relinquish ownership of these assets. Instead, a trustee is appointed to manage the assets on behalf of the beneficiaries. A key advantage of an irrevocable trust is that the trust assets aren’t exposed to estate taxes, probate processes, or claims from creditors.
Types of Minnesota Irrevocable Trusts
There are several irrevocable trusts available:
Marital Trusts
A Marital or “Bypass” Trust is designed for married couples with sizable estates. Its main purpose is to lower estate taxes when one spouse passes away. Here’s how it works: the assets of the first spouse to pass away are moved to the trust, benefiting the surviving spouse. This person can use the trust’s income, and since it’s not part of their estate, estate taxes don’t apply.
Trusts for Minors
These trusts protect the well-being of young children until they’re adults. Some trusts for minors cover a child’s health, education, upkeep, and support during their younger years. Others might only release funds once the child reaches a certain age or meets a milestone, like finishing college.
Special Needs Trust
A special or “supplemental” needs trust is designed for a disabled child or adult receiving public benefits (like Social Security Disability or Medicaid). Without proper planning, a large inheritance could jeopardize their eligibility for these programs. This trust ensures they can use assets for everyday expenses without compromising their government benefits.
Spendthrift Trust
For beneficiaries struggling with financial management, facing creditor threats, or dealing with addiction issues, this trust is ideal. The trustee oversees the trust assets, and depending on the setup, may provide a regular allowance or directly handle the beneficiary’s bills.
Medicaid Trust
Medicaid offers critical support for nursing care, but there are stringent eligibility criteria based on income and assets. With an Irrevocable Medicaid Trust, assets inside the trust aren’t considered when determining Medicaid eligibility.
Charitable Trust
For those wanting to merge philanthropy with tax efficiency, a charitable trust is a good fit. With a charitable remainder trust, assets go into the trust, a chosen beneficiary receives income for a specified time, and the balance supports a chosen charity.
Life Insurance Trust
Though life insurance proceeds can bypass probate, they’re still considered for estate tax calculations. An Irrevocable Life Insurance Trust (ILIT) owns the policy, and a trustee disperses the proceeds to beneficiaries upon the grantor’s passing.
Dynasty Trust
Creating a dynasty trust is an innovative, complex strategy to minimize taxes when passing wealth across generations. This trust can move assets to children, grandkids, and even further generations.
Why Trust Unique Estate Law?
At Unique Estate Law, we guide a diverse group of clients on irrevocable trusts, including same-sex couples and members of the LGBTQ+ community. We’re not just savvy trust lawyers; we’re compassionate individuals who genuinely care about addressing your needs. Our team ensures every solution aligns perfectly with your goals, prioritizing your assets, dear ones, and legacy.
When you meet with us, you will find an inclusive environment in which you can make informed decisions about your future. We offer trustworthy advice, cost-effective service, and a personalized approach. Above all, we will provide you with compassionate, efficient representation and help you achieve your estate planning goals.
Connect with Our Skilled Minnesota Irrevocable Trust Attorney
It’s a myth that trusts are solely for the affluent. In truth, many can benefit from an irrevocable trust. With Unique Estate Law, you’ll feel both comforted and confident. Let’s begin this journey together. Reach out to us today.