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To my understanding, an irrevocable trust has tax advantages but the significant downside is you pretty much can’t change it, which is why it's called an irrevocable trust vs a revocable trust. Well, my lawyer says while you are still alive you can change it, but all of your beneficiaries will have to sign off on any changes.
The major benefit though of an irrevocable trust is once you put assets into the irrevocable trust, your beneficiaries and heirs don’t have to pay capital gains tax on any future appreciation in asset value.
Another interesting note, apparently once the trustee of a revocable trust dies, it becomes an irrevocable trust.
So my accountants have always told me that it's wisest to do estate planning as soon as you buy an asset, so why wouldn't everyone start an irrevocable trust as soon as they buy a property?
What am I missing here guys?
The major benefit though of an irrevocable trust is once you put assets into the irrevocable trust, your beneficiaries and heirs don’t have to pay capital gains tax on any future appreciation in asset value.
Another interesting note, apparently once the trustee of a revocable trust dies, it becomes an irrevocable trust.
So my accountants have always told me that it's wisest to do estate planning as soon as you buy an asset, so why wouldn't everyone start an irrevocable trust as soon as they buy a property?
What am I missing here guys?