Irrevocable Trusts in Indiana
Did you know that a will might not be enough for your estate plan? Putting assets inside a will does set them up to be distributed to your beneficiaries in the future, but this can also pose problems for your loved ones as the will goes through probate. Furthermore, someone might challenge the will and delay the probate process even further. These are just a few of the reasons why you might consider working with an Indiana irrevocable trusts lawyer instead.
An irrevocable trust in Indiana can be used to satisfy advanced estate planning objectives. You surrender any ownership of the items placed inside an irrevocable trust and it is important to be sure about what you intend to accomplish with this strategy due to the fact that you cannot change or update the trust after creating it. This can sound confusing but there are some definite benefits to establishing an irrevocable trust. Many people who are exposed to substantial estate taxes will consider an Indiana irrevocable trust.
When you remove these assets from you own estate for tax purposes and place them inside the trust, you also get the benefit of protecting these assets from any litigants who might file a lawsuit against you in the future. Another common reason for establishing an Indiana irrevocable trust is for Medicaid planning. Many citizens will need help at some point in the future with their day to day needs and Medicaid can be an important source of funding this long term care support. These facilities can be extremely expensive and Medicare does not provide the payments for this form of long term care.
While the Medicaid program does support long term care, it is a need based program, meaning that people who have substantial assets within their own personal name might not be able to qualify for Medicaid. If you can instead transfer these assets into an irrevocable Medicaid trust, these would not be viewed by the government as your personal property if you ever needed to apply for Medicaid to support your long term care. Surrendering any ownership when you establish an irrevocable trust is one of the leading reasons why many people question irrevocable trusts. However, they can have big benefits over a revocable trust.
Assets put inside a revocable trust are classified as part of your estate for tax purposes, could potentially be in play if you were sued, and will be counted if you apply for Medicaid. An irrevocable trust can give you a layer of control in planning your own future but should only be crafted with the support of an experienced and knowledgeable estate planning lawyer in Indiana. Understanding when you should and shouldn't use an irrevocable trust is a topic of discussion with your estate planning attorney in Indiana. Putting together an irrevocable trust in Indiana is one option to help protect your assets and fulfilling your estate planning goals.