When we discuss trusts in the context of estate planning, we often focus on revocable trusts. While revocable trusts have many uses and benefits, including the fact that they can be dissolved and modified, there are certain situations in which an irrevocable trust may be more beneficial. In this blog, we will discuss the unique benefits of an irrevocable trust and explain situations in which an irrevocable trust may be the best option for meeting your needs.

Irrevocable Trust Advantages and Disadvantages

An irrevocable trust is a powerful estate planning tool that offers numerous benefits. Many people use an irrevocable trust to protect assets from creditors or lawsuits. With an irrevocable trust, the assets placed into it are no longer owned by the grantor, so they cannot be seized under most circumstances. For example, a doctor or surgeon may use an irrevocable trust to protect their assets from future malpractice claims.

A special needs trust is a special type of irrevocable trust that is often used in estate planning for people with disabilities. A special needs trust can provide financial support to a disabled person without jeopardizing their eligibility for government benefits. The trust is designed to supplement government assistance programs like Medicaid and Supplemental Security Income (SSI).