Irrevocable Trusts in Denver, Colorado
Information from a Denver Estate & Probate Attorney
An irrevocable trust is similar to a living revocable trust in both form and content. However, as its name implies, an irrevocable trust cannot be modified or revoked without a court order. One common type of irrevocable trust is an Irrevocable Life Insurance Trust (ILIT) which owns a life insurance policy on the Grantor. The death benefit is distributed to the beneficiaries tax free and can be used to pay the federal estate taxes, final expenses and other debts and obligations of the deceased.
Generally speaking, the benefits of an irrevocable trust include:
- Shifting assets to the Grantor's children or other family members in order to reduce the size of the Grantor's taxable estate
- Income generated by the irrevocable trust is taxed to the beneficiaries rather than the Grantor
- Assets held by the irrevocable trust are not subject to probate , nor can creditors of the beneficiaries attach or seize Trust assets.
Can Changes Be Made to an Irrevocable Trust?
While Irrevocable Trusts are generally considered "unchangeable," there are circumstances in which a court will allow the alteration of its terms. Typically, this occurs when there are drafting errors or when a change of circumstances occurs that puts the terms of the Trust at odds with the Grantor's intent.
Because the details and issues involved in creating an irrevocable trust are highly complex and subject to IRS scrutiny, it is paramount that you consult a Denver estate planning attorney at the James A. Littlepage Law Offices with the requisite expertise and experience before proceeding with an irrevocable trust as part of your estate plan.
An Experienced Attorney Can Help
Attorney Littlepage has provided clients in Colorado with exceptional legal counsel for more than 40 years, and who was recognized with a 2015 and 2016 Five Star Estate Planning Attorney℠ award. In 2014, 2013, 2012, 2011 and 2010 he received the Five Star Wealth Manager℠ award, as seen in 5280 and ColoradoBiz magazines.