Many people believe that if you create an irrevocable Trust, you are required to obtain a separate tax identification number. Please watch the video of our attorney Mike Robinson as he explains whether or not this is necessary - below: … [Read more...] about Do I need a separate tax ID number for an irrevocable trust?
Most senior citizens will need living assistance eventually, and a significant percentage of them will reside in nursing homes. These facilities are extremely expensive, and Medicare does not pay for the custodial care that nursing homes provide. Medicaid will pay for long-term care, but it is a need-based program, so there are income and asset limits. In an effort to develop a financial profile that will lead to Medicaid eligibility, you can convey assets into an irrevocable Medicaid trust. … [Read more...] about What are these reasons?
Some irrevocable trusts are used to remove the value of assets from your taxable estate. Currently in New York, you would owe estate tax only if your taxable estate exceeds $5.93 million dollars, so those trusts are typically created by wealthy individuals. However, there are other reasons why a person would use an irrevocable trust. … [Read more...] about Are irrevocable trusts only used by very wealthy people that have estate tax concerns?
It is possible to create a trust that cannot be revoked while you are living, but the living trusts that most people use are revocable. When you establish a revocable living trust, you would act as the trustee while you are living, and you could change the terms as you see fit. … [Read more...] about I hear a lot of people espousing the virtues of living trusts. Is a living trust irrevocable?
An estate plan could allow for the utilization of a trust protector, which is an objective third party that would be brought in by a court, the trustee, or the beneficiaries. This trust protector would become apprised of the facts and make a decision with regard to a proposed change. The trustee or the beneficiary of an irrevocable trust can be given a power of appointment that would give them the ability to change the terms. Under some circumstances, a court can order a judicial … [Read more...] about What are the exceptions?
Again, that depends on the type and purpose of the trust. If the trust has been established to provide nursing home asset protection, you can retain the power to make changes to the trust. … [Read more...] about Can you change the terms of an irrevocable trust after it has been created?
Whether you lose control of the assets depends on the type and purpose of the irrevocable trust. For examples, some irrevocable trusts that are done for advanced tax planning purposes do require you to give up control of the assets. Other types of irrevocable trusts, such as those done to protect assets from nursing home expense, do not require you to give up control, as long as the trust is drafted properly. … [Read more...] about Do you completely surrender control of assets in an irrevocable trust?