Portland Irrevocable Trust Attorney

Since irrevocable trusts cannot be easily modified or terminated after they are finalized, it is highly recommended that you work with a credible Portland irrevocable trust attorney to ensure the trust is set up according to your desired outcomes. When you set up an irrevocable trust, you are creating a document you cannot change easily, and the property you transfer to the trust is no longer in your control.

At Michael D. O’Brien & Associates, P.C., we understand the importance of well-structured revocable and irrevocable trusts, wills, and other estate planning documents. Contact us now and schedule a free case evaluation with our skilled Oregon estate planning lawyers to learn more about your estate planning options.

Why Do I Need an Irrevocable Trust Attorney in Oregon?

Creating an irrevocable trust is a serious decision. Many people consider irrevocable trusts an essential tool in their estate planning. Even though you’ll give up control over the trust property, you do have control over the rules that govern the trust and you can determine the uses of the trust assets. There’s a lot to consider when establishing an irrevocable trust, that’s why it’s essential to seek legal advice from our trusted Portland irrevocable trust attorneys at Michael D. O’Brien & Associates, P.C. Our legal team can:

• learn about your situation, discuss the benefits of developing an irrevocable trust, and help you make informed decisions about how to proceed.
• help families structure an estate plan or feel more secure with a review of their existing estate plan.
• help clients preserve and protect their legacy by providing estate planning and administration services professionally and efficiently
• provide legal advice and guidance in administering trusts and estates, filing probates, and resolving estate planning disputes.
• assist numerous clients in Portland, Bend, and Clackamas in setting up wills, revocable and irrevocable trusts, powers of attorney, advance directives, healthcare directives, and other estate planning documents to protect and distribute your assets.

Obtain the peace of mind you deserve, knowing your assets and legacy will be protected. Find out today if a revocable or irrevocable trust is right for you by scheduling a free case evaluation with our top-ranking Portland estate planning lawyers.

What is an Irrevocable Trust?

Unlike revocable trusts, an irrevocable trust is a type of trust that cannot be easily changed, amended, or terminated once it’s signed. There are only a few specific instances that would allow for an irrevocable trust to be modified. In most cases, changes must be approved through the permission and consent of all named beneficiaries.

An irrevocable trust is designed so the creator of the trust (grantor), can designate assets of their choosing to transfer over to a beneficiary. Irrevocable trusts may be created by a person during their lifetime for reduced federal estate taxes and asset protection purposes, or an irrevocable trust may be created within a will or revocable trust to protect the inheritance of a beneficiary. Our qualified Portland irrevocable trust attorney can help you determine whether an irrevocable trust is right for you.

What are the Types of Irrevocable Trusts?

There are many reasons to create an irrevocable living trust, ranging from the long-term care of a disabled beneficiary to shielding a home from estate taxes. The type of irrevocable trust you must create depends on what level of protection you need. Our competent Portland irrevocable trust lawyer can help you determine the right type of irrevocable trust that will work for you. A few of the more common irrevocable trusts include:

Irrevocable Life Insurance Trust

An irrevocable life insurance trust is one of the most commonly used estate planning tools because of the tax savings benefit. This trust reduces estate taxes by removing the proceeds of life insurance from a taxable estate.

The transfer made to fund an irrevocable life insurance trust is permanent. The beneficiary of the policy can be anyone, but the trustee must be someone other than the previous owner of the policy. The designated trustee manages the distribution of proceeds from the policy to the trust beneficiaries upon the death of the insured.  The grantor cannot control the policy once the trust is made, and the trust must exist for at least three years before the grantor’s death.

Qualified Person Residence Trust

A qualified personal residence trust (QPRT) is a specific type of irrevocable trust that allows its creator to remove a personal home from their estate to reduce the amount of gift tax that is incurred when transferring assets to a beneficiary.

Spendthrift Trust

A spendthrift trust is a type of trust that limits your beneficiary’s access to assets. Instead of receiving their inheritance all at once, the funds are released incrementally. This type of trust protects a beneficiary from wasteful spending that may rapidly exhaust their assets.

Special Needs Trust

A special needs trust is a trust that holds funds for your loved one but does not impact your loved one’s financial eligibility for government programs such as Supplemental Security Income (SSI), Medicaid, vocational rehabilitation, and subsidized housing.

Charitable Remainder Trust

A charitable remainder trust is a tax-exempt irrevocable trust designed to reduce the taxable income of individuals. It is a good option if you want an immediate charitable deduction, but it also requires an income stream for yourself or another person. It allows you to donate generously while receiving tax benefits.

Bypass Trusts

A bypass trust, also called a family trust, is designed to help a family save on estate taxes and can be used to provide income to your spouse or other family members during the surviving spouse’s lifetime. You and your spouse will each have provisions in your will directing personal assets, not community property, to be used to fund the trust. When the first spouse dies, the bulk of his or her property goes into the trust. The surviving spouse can use trust property, but he or she never owns it. So when the surviving spouse dies, that property is not included in his or her estate.

What are the Benefits of Setting Up an Irrevocable Trust?

The benefits of an irrevocable trust become stronger the longer the trust has been in existence. Learn more about the advantages of setting up an irrevocable trust by consulting our knowledgeable Portland irrevocable trust attorney. Here are some of the benefits of setting up an irrevocable trust:

Minimize the Burden of Estate Taxes

An irrevocable trust may be designed to remove assets from your taxable estate. Most taxpayers who have large estates benefit the most from creating an irrevocable trust. Since the grantor no longer owns the property, it’s not included in tax calculations of the total value of the property at the time of death.

Protect Your Assets from Creditors and Lawsuits

Protecting your assets from your creditors usually requires a trust to be irrevocable. A property placed in a trust is generally shielded from outside creditors, liens, and even divorcing spouses. Because you no longer control the assets held in trust, in most instances, creditors can only seize them if you run into problems repaying debt.  This is a very effective form of asset protection.

Access to Government Benefits

To qualify for certain government programs, applicants often need to demonstrate limited assets and income in their personal estate. An asset protection trust can help remove assets from one’s estate to gain eligibility for government programs. By putting assets into an irrevocable trust, you may not have to deplete your savings and assets before qualifying for assistance.

For example, moving assets to an irrevocable trust allows the grantor to obtain Medicaid benefits if he moves into a nursing home. By placing assets into an irrevocable trust five years ahead of the actual need, the grantor has secured his assets for the benefit of named beneficiaries.

Call Our Seasoned Portland Irrevocable Trust Attorney Now!

One of the most common ways to protect your assets and communicate your wishes to your beneficiaries is through the creation of an irrevocable trust. However, setting up an irrevocable trust can be challenging. In this case, it is essential to seek legal advice from our experienced Portland irrevocable trust attorneys at Michael D. O’Brien & Associates, P.C. to guide you through the process.

Our estate planning law firm can help with the planning and maintenance of all types of irrevocable trusts. We strive to achieve the best outcome for every client through reasoned, logical, informed, and effective advocacy. We can help you explore the pros and cons of irrevocable trusts and decide if such an arrangement is right for you. Schedule a free case evaluation with our Oregon estate planning lawyers now to learn more about how we can help you achieve your estate planning goals.