Creating an Irrevocable Trust
Another estate-planning service we provide here at Meaney & Meaney PC is creating irrevocable trusts. An irrevocable trust, as the name suggests, is a trust that cannot be changed after it is created. For example, clients who wish to avoid Medicaid liability if they end up needing long-term disability care, such as in a nursing home, might choose an irrevocable trust.
Why should you consider an irrevocable trust as part of your estate plan?
Some benefits include …
- Estate tax reduction. Irrevocable trusts are commonly used to remove the value of property from a person’s estate so that the property can’t be taxed when the person dies.
- Asset protection. This works in the same way that an irrevocable trust can be used to reduce estate taxes. By placing assets into an irrevocable trust, the creator of the trust is giving up complete control over, and access to, the trust assets and, therefore, the trust assets can’t be reached by Medicaid or a creditor.
- Charitable estate planning. Clients who make an initial transfer of assets into a charitable trust while still alive will receive a charitable income tax deduction in the year the transfer is made. Or, if the initial transfer of assets into a charitable trust doesn’t occur until after their death, the estate will receive a charitable estate tax deduction.
- Of course, there is much more to an irrevocable trust than can be covered in a brief newsletter, including some disadvantages. It all depends on the particular person. Contact Meaney & Meaney PC at 631.427.2900 for a free consultation to discuss whether an irrevocable trust is right for you or your client.
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My husband lost his job and were getting in over our heads with debt. After a few unfortunate failed attempts at directly asking out mortgage company for help , we found Meaney & Meaney PC. Not only did they get us into a mortgage payment that was affordable for our family, they were so understanding and compassionate. Andrew and James were reachable and honest through the process and truly cared about helping us. They never left us hanging and always followed through with their word. If it wasn’t for Meaney & Meaney PC, I’m not sure we would be in our home today. We are so grateful!!!
~ Angela B., Kings Park.
~ Lori Y., Northport
We were first-time homebuyers without a clue of how the whole process worked. Meaney & Meaney PC took the time to explain everything to us in clear, understandable language, from the time we signed the contract to the day we finally closed. When a problem came up on the title report, James and Andrew went above and beyond to take care of it, and with their expertise, we were able to close on time. Thank you
~ Susan L., Huntington
Meaney & Meaney PC handled the sale of our previous home and the purchase of our current one. This involved multiple parties on a very tight schedule and could have been a very stressful experience but everything was concluded on time with a welcome lack of drama.
~ Richard T., Lloyd Harbor