An irrevocable trust is a legal document you may use as a tool to protect your assets and property if you:
1. are concerned about creditors coming after your money,
2. need to apply for social security disability benefits,
3. need to apply for Medicaid assistance, or
4. want them set aside for the care of a beneficiary, and
5. want to make your wishes known regarding the manner of distribution of your estate, property, and other assets.
II. FUNDING THE TRUST
Creating an irrevocable trust requires that the Grantor (You) "fund" it by transferring your assets and property into the trust. The trust then becomes the owner of your assets and property. The Grantor retains full access and use of the assets and property; however, the trust "owns" them, not you. As Grantor, you may also choose which beneficiary will receive the benefits of the property.
III. TRUST PROPERTY EXEMPT FROM CREDITOR CLAIMS
Since the trust owns your assets and property, creditors may no longer seek to sell that property to satisfy a debt (except under minimal circumstances).
IV. IRREVOCABLE TRUST MAY NOT BE CHANGED
It is important to note that once you create the irrevocable trust, it is nearly impossible to change its terms. The terms are permanent and very difficult to change in the future. Nevertheless, it is a valuable estate planning tool you may use to protect your assets and property.
V. MORE INFORMATION
For more information regarding trusts, visit our YouTube Channel and review the "Trust Funds 101" series consisting of seven videos.