Irrevocable Trusts

Trusts are great estate-planning tools that offer a host of benefits, including asset protection, privacy, ease of distribution, protection from creditors, and tax benefits. 

Unfortunately, far too many believe trusts are only a tool used by the wealthy. The reality is trusts can greatly benefit estates of almost any size. 

Under Ohio law, the most common types are revocable, irrevocable, and special-needs trusts.

• Revocable Living Trusts: Are established to manage assets that remain under your control during your lifetime. You can also name a successor trustee upon your death or incapacitation. These trusts can continue to manage the assets in accordance with your wishes, or can outline how assets are to be distributed upon your death. 
• Irrevocable Trusts: These trusts are irrevocable, except in accordance with trust documents. While this forfeits control of the assets, they also offer better protection from creditors. They can also offer additional tax benefits and may allow you to continue to benefit from the income of assets during your lifetime. 
• Special-Needs Trusts: These are established to benefit those with special needs by providing income and other benefits that can allow them to continue to receive crucial government benefits. 

Establishing and Benefiting From Irrevocable Trusts

In a trust, assets are entrusted to a trustee who holds legal title and manages the assets until they are distributed to the eventual beneficiary. This can be a person, an attorney, or even a corporation, but is most often a trusted individual named by the person establishing the trust. The terms of the trust describe how income from the assets and principal are to be distributed and managed.

In establishing an irrevocable trust, the trustee is surrendering the rights to the assets in trust unless he or she is named as trustee. In exchange, the assets will not be subject to estate taxes (unless he or she remains trustee), and will be better protected from creditors. You may also be able to continue to enjoy trust income during your lifetime. There are a number of complex considerations in determining whether an irrevocable trust is right for you. Consultation with an experienced trust attorney in Cleveland will best help with determining the benefits and consequences. 

The Law Offices of Daniel McGowan, LLC is a full-service law practice, with extensive experience in the areas of litigation and trial practice, elder law, and probate law and trust law.  Daniel McGowan is well known for his experience with the probate process and Florida, Pennsylvania and Ohio and probate courts.  He has a reputation for being accessible and for his thoughtful and innovative manner he solves probate problems and other civil disputes.

Daniel McGowan represents clients in probate and estate matters throughout the Cleveland area, including Lakewood, Rocky River, Fairview Park, Shaker Heights, Cleveland Heights, South Euclid, East Cleveland, Linndale, Brooklyn, Parma, Brook Park. Newburgh Heights, Cuyahoga Heights, Brooklyn Heights, Warrensville Heights, Maple Heights, Garfield Heights, Bratenahl and Euclid.

Call 216-242-6054 today for a free and confidential consultation.