What does it mean to fund the trust do i have to keep paying to keep the trust? Is the irrevocable trust means I don't get to keep my homestead exemption on my home? How will this affect me if I in the future want to file for chapter 7 or if i have unsecured creditors or take out another mortgage? thank you! Also can i be the trustee in irrevocable trust?
Estate Planning Attorney
There are quite a few questions here, so first an irrevocable trust is not changeable, a revocable trust is. If you create a revocable living trust, generally the idea is to avoid probate by placing assets in the trust. If you don't place assets in the trust (fund it), then it doesn't make sense to have it, unless your will states that upon your death, your assets pourover into the revocable trust which becomes irrevocable upon your death. In this case, the terms of the trust control who gets what and when. You can place your homestead in a revocable trust in Texas and maintain the homestead exemption. However some county clerks are not as versed in the law as others and you may have a fight. As to being trustee of an irrevocable trust, it depends what kind of trust and what you are trying to accomplish.
Hope this helps. If you think this post was helpful, please check the asnwer was a good answer tab below. Thanks. Mr. Geffen is licensed to practice law throughout the state of Texas with an office in Dallas. He is authorized to handle IRS matters throughout the United States and is licensed to practice in US Tax Court as well as The Court of Claims. This answer is provided as a public service and as a general response to a general question, it is not meant, and should not be relied upon as specific legal advice, nor does it create an attorney-client relationship.
Whether you have recently inherited an interest to a trust, a position as trustee or are thinking about forming a trust, you need an experienced estate planning attorney to provide guidance based on your specific situation. This is one of those times when paying for some expert advice is usually going to save money and hassle in the long run.
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