An Irrevocable Trust may be a very important part of a client’s estate plan. Irrevocable Trusts are useful for many purposes, but often its purpose is to remove property from a individual’s estate for federal, and sometimes for state estate tax purposes. Income from the trust property will not be includable in our client’s taxable income and all future appreciation on the property will not be included in our client’s taxable estate. The transferred property is also protected from creditor's claims.

We will advise our clients also as to any adverse consequences with regard to property rights and taxes arising out of the operation of an Irrevocable Trust. For example, the transfer of property may become a gift for gift tax purposes or have other tax consequences. If real property is involved, there could be state property tax consequences.

Also, the client gives up most rights to control the property which is transferred into the Irrevocable Trust. The client is required to part with the economic benefit and absolute control of the trust property to escape estate and income taxes. Despite possible gift tax liability, removing property from an estate to an irrevocable trust may still result in a more tax efficient way to transfer our clients’ accumulated wealth to their beneficiaries.

Examples of Irrevocable Trusts include Life Insurance Trusts and Grantor Retained Interest Trusts, Charitable Trusts and Special Needs Trusts. This is not an exhaustive list of Irrevocable Trusts involved in estate planning. We will advise our clients and address issues that are particular to our clients’ specific situation.

We work closely with financial professionals, insurance experts, and accountants to assist and advise clients with the many unique needs and opportunities regarding the use of Irrevocable Trusts.