The Pros And Cons Of Irrevocable Trusts
An irrevocable trust is a trust into which you transfer assets that you wish to protect.
- Property avoids Probate;
- Provide children with a step-up in basis of real estate allowing them to sell the property tax free at your death (if a life estate was retained by you);
- Protects the property from Nursing Home costs provided sufficient time has passed since the transfer of the property to the trust;
- Allows for flexibility to deal with the possible death of a child, a disabled child or substance abuse child; and
- Allows for tax avoidance on generation skipping to grandchildren.
- Loss of entitlement of real estate tax abatement for veterans, disabled and elderly;
- You are not entitled to any beneficial interest in the trust; and
- Loss of control of assets in the trust.
The information provided herein is for general purposes only and does not purport to give specific advice on individual matters. If you want individual advice, contact Mary Howie, an Elder Law and Estate Planning attorney practicing in New Hampshire and Massachusetts. Attorney Howie also holds a master’s degree in business administration and finance. Call her at 603-893-8008.