If I do an Irrevocable trust (Joint) with my spouse and then we buy a house and put it in the trust. Can we at any point sell that house and transfer it (as the trustees) to the new owners or are we stuck with it since we cant amend the trust.
In MOST cases, you would want to use a REVOCABLE Trust, particularly if you and your wife are going to retain any access or control of the asset. The reasons for establishing IRREVOCABLE Trusts normally involve removing these assets from your access or control, in order to gain tax benefits or asset protection. If you act as Trustee, you would be retaining too much control of these assets in order to achieve the normal objectives. You would normally not be trustees or beneficiaries of irrevocable trusts.
My suggestion would be to meet with a qualified estate planning attorney to determine what your best options would be. In addition to a Trust, you will also want to establish Durable Power Of Attorney forms for health care and financial matters. This will insure that the person of your choice can act for you, if you ever become incapacitated. In the absence of Power of Attorney forms, probate appointment of a guardian and conservator would be required.
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Mr Frederick offers sound advice. In most cases you would use a revocable trust. If you were to use an irrevocable trust you would consider a QPRT ( a qualified personal residence trust). You need to sit down with an estate attorney to set up a plan that meets your financial and family goals. For more on these and other issues, see Estate Planning Mistakes: 5 Not So Easy Pieces at http://www.sjfpc.com/estate_planning_drafting_wills_trusts.html
Hope this helps.
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Mr. Fromm is licensed to practice law throughout the state of PA with offices in Philadelphia and Montgomery Counties. He is authorized to handle IRS matters throughout the United States. His phone number is 215-735-2336 or his email address is [email protected] , his website for more tax, estate and business articles is www.sjfpc.com. and his blog is
LEGAL DISCLAIMER Mr. Fromm is licensed to practice law throughout the state of PA with offices in Philadelphia and Montgomery Counties. He is authorized to handle IRS matters throughout the United States. His phone number is 215-735-2336 or his email address is [email protected] , his website is www.sjfpc.com. and his blog is <http://frommtaxes.wordpress.com/> Mr. Fromm is ethically required to state that the response herein is not legal advice and does not create an attorney/ client relationship. Also, there are no recognized legal specialties under Pennsylvania law. Any references to a trust, estate or tax lawyer refer only to the fact that Mr. Fromm limits his practice to these areas of the law. These responses are only in the form of legal education and are intended to only provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that if known could significantly change the reply or make such reply unsuitable. Mr. Fromm strongly advises the questioner to confer with an attorney in their state in order to ensure proper advice is received. By using this site you understand and agree that there is no attorney client relationship or confidentiality between you and the attorney responding. This site should not be used as a substitute for competent legal advice from a licensed attorney that practices in the subject area in your jurisdiction, who is familiar with your specific facts and all of the circumstances and with whom you have an attorney client relationship. The law changes frequently and varies from jurisdiction to jurisdiction. The information and materials provided are general in nature, and may not apply to a specific factual or legal circumstance described in the question or omitted from the question. Circular 230 Disclaimer - Any information in this comment may not be used to eliminate or reduce penalties by the IRS or any other governmental agency.
Most people in Nevada use a revocable trust to own their home. It is peculiar to want to place a home in Nevada in an irrevocable trust. Nevada has a $550,000 homestead exemption, so unless you are over that amount in equity you would not use an irrevocable trust to protect equity. Both attorneys answers are correct and provide you with good advice. I, too, urge you to meet with an estate planning attorney to address your estate planning goals and objectives.
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