A revocable trust is just that. You can revoke it and move assets in or out of trust. Usually, irrevocable trusts are set-up for particular purposes. Depending on how the trust is set-up and the assets you intend to transfer, you could incur gift taxes and reappraisal of any real property for property tax purposes. There could also be fees incurred when you transfer certain kinds of property, such as real property. If I were you I would seek the advice and counsel of an estates and trusts attorney to determine if an irrevocable trust might be right for your situation before you attempt to transfer any assets. It is not a DIY project. Good luck.
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REvocable trusts become irrevocable on death - but that's not a good alternative for you.
You can transfer assets from a revocable trust to an irrevocable trust - but check with your CPA first. When assets are tranferred to an irrevocable trust, a gift tax return showing the basis & fmv must be prepared an filed. Then, if you die within 3 years of the date of the trust and transfer, the assets flow back into your estate. If your assets are under $5,340,000, some of these issues will not matter - but be sure to check with your CPA before having an irrevocable trust prepared.
As stated before, generally revocable trusts can be made irrevocable and can easily transfer property in and out including making transfers to another irrevocable trust. While some of these transfers may trigger transfer tax consequences, those are likely to be minor unless you are transferring large values in or out of an irrevocable trust. You may gift value in or out of a trust up to about 14,000 per recipient per year without any gift tax exposure.
On the other hand, irrevocable trusts are generally more involved when it comes to transfers out of the trust. It would be interesting to know why you are considering an irrevocable trust as that would change the dynamics and possible feasibility of what you are trying to accomplish. For instance, is the irrevocable trust for purposes of Medicaid planning?, tax planning?, asset protection planning?
I suggest consulting a local attorney to get a more detailed answer.. Feel free to contact me if you would like us to recommend one to you.Ask a similar question
If you have assets in a revocable trust, you can do whatever you like if you are the creator and manager of that trust -- meaning you are the settlor and trustee. As for moving to an irrevocable trust, you will be tying up those assets so be sure this is what you intend to do and understand all of the consequences including tax consequences. There are no government fees but you may incur attorney fees if you hire an attorney to help you.
As we must state: any information provided in this answer is not legal advice and your use of it does not create an attorney-client relationship.Ask a similar question