An irrevocable trust can be a very effective wealth-transfer vehicle. The assets used to fund the trust, as well as any appreciation they generate, escape estate tax upon the death of the settlor, or person establishing the trust. The savings can be substantial, since the top federal estate tax rate is currently 45 percent.
No creditor may have access to the trust assets when this particular tool is in use. If your property is in such a trust, no creditor has the right to seize it in lieu of an unpaid loan. Even a lawsuit cannot give the creditor this right to seizure. You can also consult with a lawyer. Go through a lawyer directory and choose a good profile, with whom you can discuss.
A revocable trust generally does not grant the beneficiary, whose right to interest in the trust is contingent, the right to compel the trustee to pay the principal at the distribution, unless the trust becomes irrevocable by the death of the settler and the beneficiary remains a beneficiary at that time.
It is important to note that there is no requirement that the surviving spouse actually keep the property until he or she dies. In fact, it’s entirely feasible that some or all of the property will be consumed by the surviving spouse during his or her lifetime.
Unlike with a power of attorney for finances, an advanced health care directive cannot be immediate; instead it must be springing. This makes sense: if the principal has capacity, he/she should be making his/her own health decisions.
Another reason that a trust can become irrevocable and remain irrevocable, despite the fact that all the beneficiaries agree it should be revoked, is that a trust is seen as having a “material purpose.” The material purpose of a trust is the reason for which it was created and what it was intended to do.