Trusts come in many different shapes and forms in Minnesota. Many people choose to manage their estate by establishing a living trust. While the revocable living trust is the most common form of trust in Minnesota, it is not the only option available. An irrevocable living trust is another option that has its own distinct advantages. If you are looking to establish an irrevocable living trust, then our attorneys are here to help you.
Minnesota Irrevocable Living Trusts
A living trust, as its name suggests, is established while a person is still alive. Essentially, it is a way to manage assets and property and ensure they will be distributed according to a person’s wishes after death. While a living trust does not completely replace the need for a Will, it is a powerful tool in an estate plan that can prevent probate. In Minnesota, there are two main types of Living Trusts: Revocable and Irrevocable.
The main difference between a revocable living trust and an irrevocable living trust is that the former can be changed while the latter cannot be. Once an irrevocable living trust is established, it cannot be modified or discontinued. While this might make some people feel uncomfortable because of the seeming inflexibility, it often can be a good solution in certain situations.
Unlike a revocable living trust, an irrevocable living trust will often reduce real estate and income taxes. One of the main reasons people choose to establish an irrevocable living trust is to reduce the tax burden associated with the transfer of property. In some cases, an irrevocable trust may help the grantor and beneficiary avoid taxes altogether.
Another big advantage of an irrevocable living trust is that it provides a lot of different options. There are dozens of different types of irrevocable living trusts that are available to establish for your particular situation. Some of the most popular irrevocable living trusts include:
- Bypass Trusts;
- Charitable Trusts;
- Life Insurance Trusts;
No matter what type of trust you are considering, it’s a good idea to consult with an experienced estate planning attorney. Trust laws are rather complicated, and there are many guidelines to take into consideration before establishing a trust.
No matter what your situation is, our Minnesota estate planning attorneys can help you determine the best type of trust for you. Our lawyers have represented thousands of clients throughout Minnesota. Contact the Brown Law Offices, P.A. today at 763-323-6555 for a free irrevocable living trust consultation.