Irrevocable Trusts in Memphis, TN
What is an Irrevocable Trust?
An Irrevocable Trust in Memphis is a Trust that cannot be amended, modified, changed or revoked.
Once an Irrevocable Trust has been created, the terms of the trust agreement are unchangable and cannot
be changed for any reason.
Living Irrevocable Trusts
These Trusts are also called Inter Vivos Irrevocable Trust and are created and financed by a living Trustmaker.
Examples of Living Irrevocable Trusts include Irrevocable Life Insurance Trusts, Qualified Personal Residence Trusts,
Grantor Retained Annuity Trusts, and Buildup Equity Retirement Trusts, Charitable Remainder Trusts, and Charitable Lead Trusts.
Testamentary Irrevocable Trusts
Almost all testamentary trusts are irrevocable. The reason is that testamentary trusts are created and funded after
someone is deceased, so no one living has the ability to change the terms of a testamentary trust.
Why do I need an Irrevocable Trust
With a revocable trust, creditors can seize the property in the trust and the assets will still be subject to
estate taxes. If the assets are placed in an irrevocable trust they are not taxed when the
trustmaker dies. Heirs don’t have to pay estate taxes. Assets are also protected from creditors.
In some states the trustmaker can be a beneficiary.
An irrevocable trust can’t be changed or amended, but there are exceptions that allow
beneficiaries or the trustee to modify the trust. The administrator or protector of the trust can make changes to
the trust details. If assets in a trust are sold, this terminates the trust.
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