What to Know About Selling a House in an Irrevocable Trust
Posted by Techyscouts | Posted on 12/03/2021
Planning for your future is essential, especially when it comes to your real estate portfolio. For many, that means planning a will or trust to ensure that your assets will be set in place legally. But where do you start planning for a trust? And which one is the best? Michael Millea can help! Our Los Angeles real estate and legal consulting firm can help you plan and acquire real estate. We can help set up your irrevocable trust. But what is the difference between a regular trust and an irrevocable trust? Learn how an irrevocable trust can help you!
Emphasis What Is an Irrevocable Trust?
When planning for your future, many write a will and might also place assets into a trust. A trust is a legal entity with rules as to how your belongings, property, and assets are distributed to your future heirs. The trustor or grantor will establish the terms of the trust, like who the beneficiaries are and what assets are distributed to them. An irrevocable trust is one that can’t be revoked, meaning it cannot be changed, modified, or canceled, except under certain circumstances. It is the opposite of a revocable trust; which means that the grantor retains control over the trust assets and can change the trust during their lifetime. Since the terms are set in stone, it can feel risky to set up an irrevocable trust. However, there are advantages, such as tax benefits and asset protection.
Emphasis What Can Go Into an Irrevocable Trust?
Many things can go into an irrevocable trust. It can include:
- Investment Assets
- Life Insurance
- Personal Possessions
- Rental Properties
There are also different types of irrevocable trusts. Here are some common examples:
- Charitable Trusts– This allows the grantor to transfer trust assets to a charitable organization and receive a tax deduction in return.
- Assets Protection Trusts– This shields the grantor’s assets against creditors, and judgments, allowing them to access trust funds.
- Special Need Trusts– This can help a beneficiary who has a disability qualify for government benefits like supplemental security income (SSI).
- Medicaid Trusts– This Can help the trust grantor qualify for Medicaid in order to get nursing homes or assisted living covered and help protect their assets.
Emphasis Who Should Use an Irrevocable Trust?
Depending on how you want your assets handled after you pass, an irrevocable trust can serve to protect your beneficiaries. It also comes in handy for individuals working in fields that make them prone to lawsuits. Once you move your asset into an irrevocable trust, your assets are protected from creditors and court judgments.
Emphasis Set Up an Irrevocable Trust With Mike Millea!
If you’re thinking of setting up an irrevocable trust, contact Mike Millea! His LA consulting firm can help you find the best real estate property for you, and advise you on how to get the best deal possible. Our comprehensive services can help anyone navigate the LA real estate market. If you have any questions or concerns, reach out to us! We can’t wait to help you get started!