When planning your estate, you may find that you have two specific needs: to reduce your tax burden and to protect your assets and property. One way to do that is to set up an irrevocable trust.
Through this process, you place a certain amount of your assets and property in the trust. Once you finalize the trust, you cannot take it back: the assets contained within it are technically no longer yours. This provides several key benefits to grantors and their loved ones:
On the other hand, irrevocable trusts can cause some discomfort, because you are essentially giving up control of your assets and allowing others to manage them. Trusts also pay income taxes at higher rates than individuals. However, you can set up an irrevocable trust in a way that distributes assets so that the trust qualifies for a lower tax bracket. A skilled estate planning lawyer can provide further guidance.