Irrevocable trusts are like revocable trusts in many respects. Much like a revocable trust, an irrevocable trust also involves three parties: a grantor, trustee, and one or more beneficiaries. At Sturgul & Long, S.C., our attorneys often utilize various types of irrevocable trusts to engage in asset preservation and to protect assets from estate recovery in the context of nursing home planning. Some attorneys may call these “Legacy Trusts” or even “Medicaid Asset Protection Trusts.” Regardless of what the trust is called, extreme care must be exercised in drafting an irrevocable trust in order to achieve any goals associated with asset protection.
In order for such a trust to accomplish the above goals, the trust itself must be irrevocable. That means, simply put, that the grantor may not later change his or her mind and revoke the trust. Moreover, the trust must be funded with assets for a sufficient period of time. Generally, once an asset is funded into an irrevocable trust for asset preservation purposes, the grantor no longer retains any right to access it for any purpose. However, the grantor may retain limited rights to designate a change of beneficiary at any time or to designate a change in trustee. Although there are many other requirements that must be satisfied, these are the most significant ones that impact whether an individual may want to utilize such a trust.
If you are at all interested in an asset protection trust, please contact Sturgul & Long, S.C. to schedule a consultation.
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