Nashville Irrevocable Trust Lawyer

Nashville Irrevocable Trust Attorney

Trusts are an important part of comprehensive estate plans, which allow individuals to place assets in a legal entity so the assets can avoid probate court. An irrevocable trust is a type of trust that is difficult to modify once it is created but comes with several financial benefits. It’s important to consider whether an irrevocable trust is right for your needs, and a skilled Nashville irrevocable trust attorney can help you make those determinations.

Estate plans that utilize one or more trusts can better protect assets from probate court, certain taxes, and creditor claims. It also allows you to make specific and controlled decisions about when and how your assets are available to your beneficiaries. Irrevocable trusts can provide even more benefits to those receiving assets, but this does not always make them the right option. Your estate plan should use the tools that are most beneficial for your unique assets and beneficiaries.

Determining the Right Estate Planning Solutions in Nashville

Emmack Probate and Estate Law Group can determine what type of trusts are useful for protecting your assets and legacy and better supporting your beneficiaries. With almost ten years of legal experience and significant work helping individuals craft their estate plans, Shanone Emmack has the knowledge and resources needed to help you. An irrevocable trust can be a useful tool in your estate plan. Shanone Emmack can determine how specific types of trusts can support your estate planning goals.

An irrevocable trust is generally a permanent creation, so it is crucial that you do it right. These trusts can help protect your estate and your beneficiaries, but they can also put you in a difficult position if they are done incorrectly. Skilled legal support helps avoid this. Shanone Emmack can guide you through the estate planning process, including the creation of irrevocable trusts, and provide assistance if any trust disputes arise.

The Basics of an Irrevocable Trust

An irrevocable trust, once it is created, cannot be modified or terminated. There are some situations where it can be, but these are limited and must be specifically stated in the trust. When you, the grantor, create an irrevocable trust, you cannot be the trustee of that trust.

The assets you place in the trust are under the control of the trustee you name, and you do not have control over those assets anymore. The guidelines you put in place will be followed, and the trustee has a fiduciary duty to the beneficiaries, but that is the extent of your control over an irrevocable trust.

In exchange for this lack of control over assets, an irrevocable trust provides specific financial benefits. It can help avoid certain taxes on the trust’s assets during your life and after your death. It can also protect the assets in the trust from most creditor claims during life and after death. In addition to creating an irrevocable trust, Shanone Emmack can assist you with wills law, ensuring that your will clearly outlines your wishes for asset distribution and provides the necessary legal framework to support your estate planning goals.

Benefits of an Irrevocable Trust

An irrevocable trust can support your estate planning goals in multiple ways. Some benefits include:

1. Tax Protection: While Tennessee does not have an estate tax, an estate could be subject to a federal estate tax. Placing assets in an irrevocable trust can prevent that federal estate tax from impacting the estate.
2. Asset Protection: Irrevocable trusts can protect assets in your estate from losses from creditors, including court judgments. This is true during your life and after you pass. Because a trust avoids probate, it also protects assets from the expenses of probate court.

Different types of irrevocable trusts can provide unique protections for your beneficiaries, as well. An attorney can guide you through the unique benefits of your estate plan.

Drawbacks of an Irrevocable Trust

An irrevocable trust has some cons, and it’s important to consider how these drawbacks may impact your future. The main drawback of an irrevocable trust is the inability to change it in the future. Generally, in order to modify an irrevocable trust, you must obtain the consent of the grantor, all the beneficiaries, and the trustee and get court approval. It is often very complicated to do this.

If your life circumstances change, the contents of the trust likely cannot change with it. You have given up the ability to control the assets in the trust and cannot use them if you need support. If you no longer wish an individual named in an irrevocable trust to benefit from the assets in it or to control the assets as the trustee, you will likely not be able to change that.

Working with an experienced attorney in Nashville can help you determine the pros and cons of an irrevocable trust, given your unique familial and estate needs. A revocable trust may be a preferred option if you want to maintain control over your assets and be able to modify the terms of the trust. However, it’s important to realize that this form of trust does not protect the assets or avoid certain taxes in the same manner.

Who Is the Right Trustee for an Irrevocable Trust?

The right trustee for an irrevocable trust will depend on your situation, but it should always be someone you trust. This may be a friend, family member, or professional. For an irrevocable trust, a independent trust company may be preferred, as you can count on their impartiality when managing a trust that you do not have control over. However, this lack of control may also prompt you to choose a trusted loved one.

It’s important to discuss the choice of a trustee with an attorney and potentially with the beneficiaries of the trust. This can help you make a more informed decision that relies on your estate planning needs.

How Much Does It Cost to Set up a Trust in Tennessee?

The cost of setting up a trust in Tennessee varies based on many factors, but it is one of the more costly estate planning documents. The more complex the trust and its assets are, the more expensive it is likely to be. While working with an attorney may increase upfront costs, it can ultimately save you money by avoiding the more expensive costs of probate and ensuring that the trust is enforceable.

Consult Our Irrevocable Trust Team for Asset Protection Advice

Designing a personalized estate plan can seem overwhelming, but attorney Shanone Emmack and her team can help make it simple. Whether you are considering an irrevocable trust or another type of estate planning document, they can help you review your options. Contact the firm today.