YOU CREATE THIS TRUST IT DURING YOUR LIFETIME, AS WITH ALL LIVING TRUSTS.
Irrevocable Trust In Georgia
Understanding Irrevocable Trusts in Georgia: Key Strategies for Long-term Asset Protection
Many believe that establishing an Irrevocable Trust in Georgia is a complex and costly endeavor, but the reality is far more accessible. Setting up an Irrevocable Trust is a critical decision for effectively managing and protecting your assets. Unlike a revocable trust, an irrevocable trust cannot be altered or revoked once it has been created, offering a higher level of asset protection and potential tax benefits. Clients often approach us with the misconception that their financial situation is too straightforward for such a trust, commenting, “My assets are simple; I don’t think I need anything complex.” However, they quickly realize the profound benefits of an Irrevocable Trust, including estate tax reduction, enhanced asset protection from creditors, and the provision of a structured inheritance for their heirs.
With over 15 years of experience at Hurban Law, LLC, serving the communities of Lawrenceville and Gwinnett County, Georgia, we are dedicated to delivering outstanding, customized service. We meticulously guide each client through the intricacies of establishing and utilizing their Irrevocable Trust, ensuring it is expertly tailored to their unique financial circumstances and family needs.
What Is A Irrevocable Living Trust In Georgia?
Irrevocable trust in Georgia is a legal arrangement that transfers assets out of a person’s estate, thereby taking control over those assets in accordance with the outlined document. Once assets are placed into an irrevocable trust, the grantor (the person establishing the trust) surrenders all rights and ownership to the assets, including the ability to alter or revoke the trust.
In the state of Georgia, irrevocable trusts are governed by the Georgia Trust Code, which provides a comprehensive framework for their creation and administration.
Can You Change An Irrevocable Trusts Terms In Georgia?
Technically speaking, irrevocable trusts cannot be “changed or modified,” which is the very first thing most people want to know. Trusts with these restrictions are by definition irrevocable. They cannot be revoked or undone.
Under the state of Georgia, if all of the beneficiaries of an irrevocable trust agree on a modification, they can file a petition to modify the trust with the help of an attorney. If the grantor is deceased, the trustee has been given proper notice, and all of the beneficiaries agree, the court must approve the modification request unless it concludes that the proposed modification is inconsistent with a material purpose of the trust.
Benefits of an Irrevocable Trust in Georgia:
Asset Protection
the protection it offers to your assets. By removing assets from your ownership, they become shielded from creditors, potential lawsuits, and other threats.
Medicaid & Long-Term Care Planning
individuals can potentially qualify for Medicaid benefits while preserving assets for their heirs.
Estate Tax benefits
In Georgia, as of the knowledge cutoff in September 2021, there is no state-level estate tax. However, individuals with significant assets may still be subject to federal estate taxes.
Avoidance of Probate
Assets held in a revocable trust bypass the probate process, allowing for potentially faster distribution to beneficiaries.
"A living trust, which is also known as an inter vivos (Latin for "between the living") trust, is originated and funded by an individual during their lifetime."
– Tim Hurban
Types Of Trust Are Available In The State Of Georgia?
There are two basic types of trust which are Revocable Living Trusts which are changeable and Irrevocable Living Trust is the opposite which means non-changeable. The objective of the trust has a big impact on a lot of aspects. But before creating one, several factors must be taken into consideration.
An Irrevocable Living Trust can serve as the main tool for transferring wealth from one generation to the next, avoiding estate taxes, and protecting assets from creditors in the future. Trusts can be used to pass on assets while also protecting it against claims made by your children, grandkids, and even great-grandchildren in the future.
A Irrevocable living trust can provide peace of mind and help you achieve your estate planning goals.
We are happy to provide a free 15-minute consultation session if you need quick guidance on whether a more in-depth meeting is needed. The free 15-minute sessions can be done either through a phone call or virtually.