Houston Irrevocable Trust Attorney

What is an Irrevocable Trust?

An irrevocable trust is one that may not be modified or changed, except in rare instances.

What are the Benefits and Limitations of an Irrevocable Trust?

Initially, many individuals wonder why they should create a trust that they cannot modify. The truth is that there are many benefits to an irrevocable trust. Once assets are transferred into an irrevocable trust for the benefit of another person, they are no longer part of your estate, and as such, are exempt from your estate or "death" taxes. This is different from property placed in a revocable trust, which is still considered part of your estate and may therefore be taxable at the time of your death. In addition, the assets in an irrevocable trust for the benefit of another person may be protected from that person's creditors and divorcing spouses.

The two most common reasons for the formation of an irrevocable trust are to minimize taxation and to protect property from creditors.

It is important to note that there are also limitations on irrevocable trusts. Generally speaking, the creator of an irrevocable trust cannot modify or cancel the trust. In some instances a beneficiary may petition to amend the trust, but for the most part the terms of the irrevocable trust remain intact after it is created.

What are the Different Types of Irrevocable Trusts?

There are numerous types of irrevocable trusts used to satisfy a variety of estate planning needs. These include, but are not limited to, the following:

  • Credit-shelter trusts (bypass trusts)
  • Inheritance trusts
  • Qualified terminable interest property trusts (QTIP)
  • Qualified domestic trusts (QDOT)
  • Charitable trusts
  • Generation skipping trusts
  • Life insurance trusts
  • Grantor-retained interest trusts
  • Qualified personal residence trusts
  • Spendthrift trusts
  • Special needs trusts

What Type of Trust is Right for My Family?

Because each family will face a different set of circumstances, it is important to work with an experienced estate planning lawyer to determine the best strategy for you. At Hayes & Wilson, our attorneys focus on estate planning and have a deep understanding of estate and tax laws. We will help you determine if an irrevocable trust is right for your family as part of a comprehensive estate plan.

Call for a Consultation with a Texas Asset Protection Lawyer

To learn more about your estate planning options, contact our Houston trusts lawyer at 713-880-3939. As a benefit to our clients, we offer fixed fees for most services.