Irrevocable trusts are some of the most popular forms of trusts out there today because of the many advantages they provide. These trusts are very easy to create and can be done with the help of an experienced attorney. Here are just a few of the benefits of creating an irrevocable trust in Illinois.
One of the biggest benefits of an irrevocable trust is the fact that it cannot be changed without the permission of the beneficiary of the trust. Even if the grantor, or person who created the trust, wants to have it changed, he or she cannot do so without permission from the beneficiary. This helps to protect the trust and all of the property and assets in it.
You will be able to eliminate the liability of the estate tax when you create an irrevocable trust. For example, if your estate exceeds the limit imposed by the government in the year you die, your estate will be taxed significantly. If you want to avoid this tax, and pass the estate to your children, put the assets in an irrevocable trust, which will protect it from those taxes when you die.
An irrevocable trust can also help you move to a lower tax bracket. This is done by putting some of your earned income into the trust. When you do this the IRS will treat the trust as independent from you and treat the resulting income as trust income, not your personal income. Even if the trust eventually is taxed at the lowest tax rate it can still help move you to a lower tax bracket.
Building an irrevocable trust has many benefits for people in different situations. Ask your attorney their advice before creating one and adding your property or assets to it.
Do you need to create an irrevocable trust for your family? Doing so with the help of our experienced estate planning attorneys in Park Ridge, Illinois, can make the process easy for all involved.