An irrevocable grantor trust is a trust that has a grantor, a trustee, and a beneficiary (or beneficiaries). An irrevocable grantor trust is different than a revocable trust in that once the grantor places the assets in the trust it cannot be revoked. You can be a sole or co-trustee of the estate. You can also retain income from assets in the trust for life or a specific period of time. Additionally, you can provide the discretionary distribution of principal to your children.
If you meet the following criteria, you should consider an irrevocable grantor trust:
- You have excess resources and do not meet Medicaid qualifying conditions.
- You want to protect your assets but do not need direct access to them.
- You don’t want to give up control of your assets and want to keep benefiting from the income they generate.
- You are married and your joint income is below the MMMNA.
- You want to protect your business from creditors but also want to keep full control of and receive all income from your business.
Benefits of an Irrevocable Grantor Trust
Benefits of an irrevocable grantor trust include:
- Asset protection from creditors and long-term care costs.
- Your income will be available and you will have full control over your assets.
- All of your affairs will be kept private.
- Your assets can be distributed to your beneficiaries in an asset protection trust.
- You can use your assets to extent trust permits.
Talk to our Experienced Attorneys Today
Do you need help protecting your valuable assets and planning your estate? If so, you should get in touch with our experienced lawyers to discuss all of your estate planning goals. We are committed to helping clients throughout Naples create comprehensive estate plans, and we are ready to put our skills and resources to work for you today.
Call (239) 303-4040 to schedule your free case consultation with a member of our law firm.