Chicago Irrevocable TrustsIrrevocable Trusts

Irrevocable trusts are extremely useful legal devices to transfer property and assets as a part of Illinois estate planning. Irrevocable trusts can also be quite complex estate planning devices and require particular attention and expertise. Our Chicago estate planning attorneys can provide individualized legal counsel on the structuring of irrevocable trusts for individuals, families and businesses to transfer estate property and assets.

While revocable trusts are all forms of living trusts, or created within the lifetime of the grantor, irrevocable trusts can be either living trusts or testamentary trusts. Some irrevocable living trusts may include charitable trusts, life insurance trusts, or spousal lifetime access trusts, which provide protection for clients when transferring wealth, protecting assets, or reducing taxable estate properties during the life of the grantor. The Last Will & Testament functions as an irrevocable testamentary trust after the death of the client. Although this document can typically be amended or modified within the lifetime of the creator, the Last Will becomes unalterable or “irrevocable” at death and will proceed to divide up estate property and assets as predetermined by the grantor’s wishes.

The tax advantages of of irrevocable trusts cannot be overemphasized. Irrevocable trusts also create legal protection for individuals, professionals and families by placing assets beyond the reach of creditors. Many of the issues associated with the probate process can also be avoided through the creation of an irrevocable trust.

Irrevocable Trust Benefits

As opposed to revocable living trusts, irrevocable trusts may not be altered, edited or reversed. In other words, the terms and agreements of an irrevocable trust are inflexible after its creation. Even still, irrevocable trusts hold several advantages in spite of their rigidness. An irrevocable trust allows a complete transfer of ownership for property or estates. An irrevocable trust thus can shield property and estates from lawsuits once transferred, because personal proprietorship has been fully sacrificed. An irrevocable trust also does not contribute towards individual taxable estate, since proprietary rights have been surrendered. Our Chicago estate planning attorneys may counsel individuals, families and businesses to consider mobilizing their assets through an irrevocable trust for tax planning and asset protection interests.

Irrevocable trusts may also be useful to avoid filing documentation to the Illinois probate court. Through the construction of an irrevocable trust, beneficiaries, or heirs, may be able to avoid a potentially lengthy and costly probate court trial and instead proceed to directly receive assets from the grantor. Because estate tax rates can be generally quite steep, our Chicago estate planning attorneys can provide legal counsel to help clients manage these estate taxes and all other Illinois estate planning matters concerning probate.