Revocable and Irrevocable Inter Vivos Trusts
The federal estate tax is currently set at 40 percent and is assessed upon gross estates valued at $5.25 million or greater. While this threshold may seem high, it encompasses all property both personal and real. Many farmers, ranchers or other landowners fail to realize the significant value of their property and do not set up an adequate asset protection plan until it is too late. Across the United States surviving family members are forced to sell family farmland or other cherished assets in order to pay an estate tax that may have been otherwise avoidable. With the rising costs of healthcare, families should also consider engaging in proper Medicaid and long-term care planning to avoid the loss of assets and wealth to the federal and state governments. A Conroe Texas trust attorney can help you if you are considering your own estate plan and have questions about your unique personal and real property portfolio.
The Irrevocable Inter Vivos Trust
An irrevocable trust you create during your life time (inter vivos) can be a powerful estate planning tool. When you make this type of trust, you transfer title to your personal and real property out of your own name and into the name of the trust. A trust agreement names your trustees and beneficiaries who will receive your property upon your death or the happening of some other named event. Once enacted, the terms of the irrevocable trust cannot be cancelled or amended.
The benefit of this arrangement is that you, as the grantor, relinquish ownership of your assets thereby significantly reducing your value. While this may sound undesirable at first, it may mean that your assets are not accessible by Medicaid, creditors or by way of a lawsuit. The most significant downside to this arrangement is that the grantor must give up control of the assets.
The Revocable Inter Vivos Trust
A revocable living trust works much the same way as the irrevocable trust; however the grantor maintains control over the assets and usually names himself as the trustee. Many clients prefer this method as they are able to maintain greater control over their investments and property while still enjoying many of the same asset protections as the irrevocable trust explained above.
Contact an Experienced Conroe Texas Trust Attorney Today
A Conroe Texas trust attorney can assist you with your asset protection plan. Contact Peterson Law Group today at (936) 337-4681.