asset protection<\/a> 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.<\/p>\nWhat are the Types of Irrevocable Trusts?<\/h2>\n
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<\/b> that will work for you. A few of the more common irrevocable trusts include:<\/p>\nIrrevocable Life Insurance Trust<\/b><\/h3>\n
An irrevocable life insurance trust is one of the most commonly used estate planning tools because of the tax savings<\/b> benefit. This trust reduces estate taxes by removing the proceeds of life insurance from a taxable estate.<\/p>\n
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.\u00a0 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.<\/p>\n
Qualified Person Residence Trust<\/b><\/h3>\n
A qualified personal residence trust<\/b> (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.<\/p>\nSpendthrift Trust<\/b><\/h3>\n
A spendthrift trust is a type of trust that limits your beneficiary\u2019s 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.<\/p>\n
Special Needs Trust<\/b><\/h3>\n
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<\/b> such as Supplemental Security Income (SSI), Medicaid, vocational rehabilitation, and subsidized housing.<\/p>\nCharitable Remainder Trust<\/b><\/h3>\n
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.<\/p>\n
Bypass Trusts<\/b><\/h3>\n
A bypass trust, also called a family trust<\/b>, 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.<\/p>\nWhat are the Benefits of Setting Up an Irrevocable Trust?<\/h2>\n
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:<\/p>\n
Minimize the Burden of Estate Taxes<\/b><\/h3>\n
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.<\/p>\n
Protect Your Assets from Creditors and Lawsuits<\/b><\/h3>\n
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.\u00a0 This is a very effective form of asset protection<\/b>.<\/p>\nAccess to Government Benefits<\/b><\/h3>\n
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\u2019s 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.<\/p>\n
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.<\/p>\n
Call Our Seasoned Portland Irrevocable Trust Attorney Now!<\/h2>\n
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<\/b>. 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.<\/p>\n
Our estate planning law firm<\/a> 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.<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n
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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, […]<\/p>\n","protected":false},"author":6,"featured_media":37410,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"categories":[],"_links":{"self":[{"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/pages\/37425"}],"collection":[{"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/comments?post=37425"}],"version-history":[{"count":5,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/pages\/37425\/revisions"}],"predecessor-version":[{"id":37437,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/pages\/37425\/revisions\/37437"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/media\/37410"}],"wp:attachment":[{"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/media?parent=37425"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/categories?post=37425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}