If you, like many people across Illinois, are working to get your ducks in a row with regard to estate planning, you may be trying to figure out the best way to preserve your wealth and assets for future generations. While there is a wide variety of steps you can take to accomplish your various needs, one solid estate planning strategy you may want to consider is to establish what is known as an irrevocable living trust.
Per the Motley Fool, an irrevocable living trust differs from a revocable trust in that, once you create it, you cannot change it. There are, however, numerous benefits that come with establishing this type of trust, making it a popular choice among many who desire to safeguard hard-earned assets for future generations.
Arguably one of the most common reasons people establish irrevocable living trusts is because they want the protection this type of arrangement provides. For example, say someone tries to sue you, or a creditor comes after you for money you owe. This person may not touch the assets you placed in the trust, effectively safeguarding them for your beneficiaries. Irrevocable trusts also typically mean lower estate taxes, as the assets you place inside the trust do not factor in when determining taxes on your estate.
You can also use an irrevocable living trust if you have concerns about how your beneficiaries may spend the money you leave behind. For example, if you fear one of your beneficiaries would blow through a large sum of money in a short amount of time, you can arrange it so he or she only receives a small amount of money each month to avoid this. While these are some of the main things you can accomplish with an irrevocable trust, please note that this is not an exhaustive list of all possible uses.
This information about estate planning is informational in nature and not a replacement for legal advice.