California Irrevocable Trusts
A revocable trust is also known as a living trust because the trustmaker creates the trust and can make changes to the trust as necessary. An irrevocable trust on the other hand cannot be changed by the trustmaker once the trust is established. An irrevocable trust is managed by the trustee and the trustmaker give up all incidents of ownership once the irrevocable trust is executed. The trustmaker cannot change the designated beneficiaries once the trust is executed.
Why Use an Irrevocable Trust?
Giving up control of a trust may be difficult for the trustmaker and some trustmakers will avoid the irrevocable trust out of fear of losing control over their own assets. The advantage of an irrevocable trust is the tax savings for the estate. The trustmaker must give up all incidents of ownership in order to take advantage of the tax benefits. When the trustmaker gives up control, the trust is no longer considered part of the trustmaker’s estate so the trust is not considered part of the taxable estate.
Getting Legal Help
Experienced California Estate Planning Attorney David Pastor has 35 years’ experience administering trusts which protect loved ones and assets and he can help you. Call us today at 925-932-3346.