By now, most of America has heard the sad news about the passing of both golf legend Arnold Palmer and Marlins pitcher, Jose Fernandez. The news is yet again another reminder of just how fragile and unpredictable life can be. Knowing that we will never have full control over our fate should push us to do whatever is necessary to protect our loved ones from the unknown. One way we can offer our family protection is through the creation of an estate plan. Estate planning is preparing during your life for how you wish your assets to be distributed or managed in the event you become incapacitated or pass away. Assets such as your financial accounts, your children, your business or your real property – you can retain control over management even after death. There are many estate planning tools to help you accomplish these goals. Perhaps the most favorable tool used in protecting one’s assets is the Revocable Living Trust but what about the lesser discussed (but equally important) Irrevocable Trust?
An irrevocable trust is an estate planning and asset protection tool that provides creditor protection in a way that the Revocable Living Trust does not. Upon execution the grantor relinquishes control of his or her assets, a realization that makes some clients uncomfortable. However, it is the relinquishment of control or ownership of the assets that trigger the asset protection. The assets will then be held in trust for the benefit of the beneficiaries and not the grantor, so any creditors of the grantor will be unable to reach these assets. They remain safe and intact for the beneficiaries no matter what life decides to throw at you. If the idea of losing control still seems unsettling, consider this: you as the grantor create the terms of the trust. You decide who will control distributions, how those distributions will be made and who will benefit from said distributions. The Irrevocable Trust is a great planning tool for those who want that asset protection and want to have extended control.
For more information on Irrevocable Trusts or other Estate Planning tools, please visit our website at www.wfplaw.com or call (954) 944-2855 for your free consultation.
IT’S A WILD WORLD. ARE YOU PROTECTED? SM