Irrevocable Living Trusts
In an irrevocable living trust, the beneficiary cannot be the trustee. Therefore a third party must be the trustee and must have full control of the trust. The assets in the trust are not your assets and therefore are not available to pay creditors. One common use of an irrevocable trust is the diminution of estate tax, protect assets from future unknown creditors, or, with certain specific trusts like a pooled income trust, to reduce excess income for the preservation of a benefit. Although there are ways to disgorge assets from an irrevocable trust and, under certain circumstances, to terminate the trust, there are many barriers in place which can make doing so difficult.
If you would like more information about our trusts and estates practice, schedule an initial consult with us or call us today to speak with attorney. You can reach our White Plains office at (914) 214 9032 and our Brooklyn office at (718) 614 – 8739. We're waiting for your call, and we look forward to being your attorneys.