Law Offices of Frye & Vazquez, P.L.
Call Today. 305-508-5749 | 877-421-5473

When to use an irrevocable trust

Some people in Florida who are creating an estate plan may want to consider an irrevocable trust. While a revocable trust is a more common choice because it allows the creator to remain in control of the assets, there are some advantages to an irrevocable trust.

The trust creator, also known as the grantor, cannot make changes to the trust, but the beneficiary can. Assets in the trust are no longer considered to be the property of the grantor but of the trust. This can protect those assets from estate tax. It may not be necessary to pay taxes on income from a home placed in a trust, and a trust may protect assets from creditors or from legal judgments. Without a trust, if a person dies in debt, assets could be sold to pay off the debt.

A person has a number of different options for a revocable trust. A life insurance trust can prevent taxes on substantial life insurance payouts while a marital or bypass trust can provide income for a surviving spouse. A charitable lead trust supports a charity and passes assets to beneficiaries when the grantor dies while a charitable remainder trust provides income for the grantor and then allows remaining assets to go to the charity.

Trusts may offer several other advantages over a will, such as greater privacy. An attorney may be able to advise regarding the advantages of a trust and whether a person's particular goals might be better served by a revocable or irrevocable trust. An attorney may also help a person avoid common errors, such as using ambiguous language in the trust. Another common error is creating a trust but failing to fund it. Choosing the right trustee can also be important since this person is responsible for managing the assets.

No Comments

Leave a comment
Comment Information

What Our Clients Are Saying

  • I have known and worked with Austin Frye and his team since 2008. In that time he has helped serve both my business and personal legal planning needs. From guidance on reviewing and keeping shareholder and state documentation up to date... - Robert
  • It is difficult enough to cope with the emotional challenges of closing a parent's estate, and when you are also faced with the issue of your parents having insufficient documentation, and being remote from your siblings… - Zara L.
  • Austin Frye provided legal services to my father while alive and to his estate after his death; when showing the EP docs his firm prepared to other professionals (lawyers, financial advisors, accountants)… - Mark S
  • I've been a client of Austin Frye's for over 10 years. In that time, he's handled my estate/trust planning and asset protection as well as complicated business deals. - Leslie
  • Mr. Frye recently set up a complicated special needs trust for my son and, as usual, did a great job explaining it and in putting our minds at ease about our son's future well-being. - Dr. Howard
Read More...
  • NYSBA
  • Massachusetts Bar Association
  • The Florida Bar 1950
  • CFP
  • Florida Bar Elder Law Member
  • Academy Of Florida Elder Law Attorneys
  • Florida bar Business law Member
  • NAELA National Academy of Elder Law Attorneys, Inc.
Email Us For a Response

Contact Us For Personal Attention To Your Legal Matter

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Location

Get In Touch With Us
20900 W. Dixie Highway
Miami, FL 33180

Toll Free: 877-421-5473
Phone: 305-508-5749
Map & Directions