Estate Planning


Future home of Attorneylocal.comFuture home of Apatrmentlocal.com

To Get A Insurance Quote

Insurance News - Insurance Company Rating - Insurance Fraud
Insurance Company - State Department of Insurance - Glossary

Health Insurance
Life Insurance
Car Insurance
Home Insurance
Dental Insurance
Travel Insurance
Pet Insurance
Disability Insurance
Farmers Insurance
Motorcycle Insurance
Business Insurance
Renters Insurance
Mobile Home Insurance
Title Insurance
Mortgage Insurance
Cobra Insurance
Estate Planning
Annuities
Longterm Care Insurance
Medicare Medigap Insurance
Flood Insurance
Earthquake Insurance
Liability Insurance
Home Page
About Us


What is an irrevocable trust what are its tax advantages?

When you create a trust, you decide whether the trust will be revocable or irrevocable. A revocable trust can be changed or even dissolved by you at any time. An irrevocable trust, however, can never be changed. The assets you put into it must stay there. Beneficiaries cannot be added or deleted. And the only way to change the trustee is for that person to die or agree to resign. Why, then, choose to make your trust irrevocable? For tax advantages. An irrevocable trust itself pays income taxes on what its assets earn. When you die, the trust property is not part of your estate and will not be subject to death taxes. Conversely, revocable trusts offer no tax benefits at all. If you want lots of flexibility, make your trust revocable. But if you want tax breaks, you must forgo flexibility and form an irrevocable trust instead.