Do you have future generations in mind when making your estate plans? Then having a simple will is not enough. Hoping the fortune will trickle down the family tree is taking things to chance, which is why you need a solid solution that works.
An irrevocable is your best bet when it comes to preserving your family’s wealth. Here’s why:
Assets within irrevocable trusts are protected
With an irrevocable trust, assets held in it are safe from creditors if a beneficiary defaults on debt. While they benefit from the trust, they do not legally own the assets held there. Therefore, these assets cannot be repossessed, auctioned or subjected to division in a divorce.
It will save on estate taxes
Having assets under a trust means they are not considered part of the estate. Your family fortune will not take a hit from the taxman with a considerably reduced estate. However, if your estate is sizable, taxes can amount to a considerable amount that would have otherwise benefited your beneficiaries.
You can plan your wealth for future generations
Special kinds of trusts can be used to pass wealth across generations. They are made to last across the next three or four future generations, ensuring that the family wealth stretches to beneficiaries even hundreds of years from now.
Keep this in mind
Before moving your assets and signing them off to an irrevocable trust, you need to know that the terms cannot be modified or altered later on. If you happen to change your mind about assets in the trust after handing them over, it may be nearly impossible to revisit your decision.
That being said, an irrevocable trust is a sure way of ensuring that the family wealth will last and that the generations to come will be financially secure. Experienced guidance can make your estate planning easier.