Long Island estate planning lawyer Seth Schlesses releases a new article (https://www.schlessellaw.com/what-long-island-residents-should-know-about-irrevocable-trusts/) explaining the finer details of irrevocable trusts and how Long Island residents can better utilize trusts as an estate planning tool. The lawyer likened trusts to a vehicle that can hold an individual’s assets and makes it possible for a trustee to manage these assets on behalf of a beneficiary. Instead of undergoing a probate process, trusts can instead be used to pass assets directly to beneficiaries.
Compared to a revocable trust which can still be modified as long as the grantor is alive, an irrevocable trust cannot be changed once created. According to the Long Island estate planning attorney, “An irrevocable trust may not be modified once created, except in minimal circumstances. Once assets are placed in an irrevocable trust, they remain in the trust, and only the trustee may control them.”
Attorney Schlessel further explains that assets in an irrevocable trust can be protected from lawsuits or government agencies that might be able to attach to the grantor’s assets. A Medicaid asset trust is a kind of irrevocable trust that helps protect an individual’s assets from Medicaid’s clawback measures when applying for medical assistance.
An irrevocable testamentary trust is created by pairing the trust with a will. The trust’s terms would only take effect upon the grantor's death, wherein the grantor’s will would be activated. Such circumstances would allow the trustee to transfer the assets to beneficiaries as appropriate.
“An irrevocable trust can be set up and funded to address estate and gift taxes. The trust assets will remain separate from your taxable estate if you give up all rights to income and principal from the trust. Giving up your rights to the income and principal means that you also need to give up the ability to modify the Trust,” according to the Long Island trust attorney.
In the article, attorney Schlessel also highlights the fact that trusts can hold a wide range of assets, from financial accounts to real estate. A trust can safeguard these assets against creditors and even help with consequences that arise due to estate tax. Trustees can be individuals or corporations and are responsible for preserving the trust and its beneficiaries’ best interests.
Lastly, attorney Schlessel recognizes that trusts are not a one-size-fits-all tool in estate planning. Consulting with a qualified attorney who can match the best estate planning device to a client’s need is still the best option one can have when planning their estate.
About Schlessel Law
Schlessel Law, founded by estate planning attorney Seth Schlessel, is a firm dedicated to providing quality estate planning services to families and individuals residing on Long Island. Consulting with these qualified professionals in estate planning may help ensure that families and their loved ones are equipped for the future. The firm also practices startup/corporate law, personal injury, and elder law. To schedule a consultation, contact (516) 574-9630.
Schlessel Law PLLC
34 Willis Ave Suite 300, Mineola, NY 11501, United States
https://youtu.be/7VAqy084ogE
(516) 574-9630
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For more information about Schlessel Law PLLC, contact the company here:
Schlessel Law PLLC
Seth Schlessel
+15165749630
seth@schlessellaw.com
Schlessel Law PLLC
34 Willis Ave Suite 300, Mineola, NY 11501, United States
