Irrevocable Trust Forms
How Irrevocable Trust Forms Protect Assets
Irrevocable trust forms play an important role in asset protection. The creator of irrevocable trusts, also called the grantor, gives up the right of control over the property in trust. By relinquishing this control, the trust is deemed not to have the "incidents of ownership" than attach to a revocable trust fund. This means that, in many cases, the assets will not be considered part of the grantor's estate for tax purposes, and won't be able to be attached by creditors for individual debts.
What is a Trust?
A trust is a legal entity that is created by a person called the grantor or settlor to manage assets for the benefit of the named beneficiaries, according to trust fund document instructions. A trustee is named to manage the property in trust for the beneficiaries, and the grantor may be named as both trustee and beneficiary as well. To put assets in a trust, they are titled in the name of the trust and held by the trustee. For example, to put real estate in trust, a deed is filed transferring the real estate to the trustee. There are various types of trusts, but two the main categories are revocable trust and irrevocable trust.
What is a Revocable Trust?
A revocable trust is one in which the grantor reserves certain powers to change or terminate it, so that the property in trust is still deemed to belong to the grantor. Assets placed in a revocable trust can generally still be able to be attached by creditors to pay for individual debts of the grantor, and will be included in his or her estate at death for tax purposes.
What is an Irrevocable Trust?
An irrevocable trust is one in which the grantor relinquishes rights of control in such a way that the property in trust is no longer considered property of his or her estate. This relieves the grantor of individual liability for tax on the income, and it's not included in the estate of the grantor for estate tax purposes.
How to Create a Trust
US Legal Forms has a wide selection of sample trust forms for estate planning. We have a trust sample for a real estate trust, family trust, grantor life insurance trust, and much more. Our forms take the guesswork out of these legal documents. You can download a professionally prepared template and easily complete the form in Word format from the convenience of your own computer.