What You Need to Know About Irrevocable Living Trusts in Michigan

For various reasons, many people set up an irrevocable living trust. Some individuals want to protect assets because they work in a lawsuit-prone field like medicine or own a business. Others desire an early start on estate planning for when they pass away.

Before searching for a “trust attorney near me,” learn more about irrevocable living trusts from the Rutkowski Law Firm: Asset Protection & Estate Planning.

What Is an Irrevocable Living Trust?

An irrevocable living trust is created during the grantor’s lifetime and managed by a named trustee. It is irrevocable because the grantor can’t change or cancel the trust after creating and funding it. One benefit, though, is that the trust property is private upon transfer into the trust, meaning creditors can’t pursue those assets.

Many people create living irrevocable trusts for a few main reasons, including:

  • Reducing estate tax burdens. By placing assets, especially income-earning assets, into an irrevocable living trust, the trust becomes responsible for estate taxes, gift taxes, income taxes, and other applicable taxes paid by the trustee using the trust funds.
  • Asset protection from lawsuits and creditors. Suppose you have a high net worth or work in a field where you are liable for lawsuits (doctor, architect, business owners, professional athletes, etc.). In that case, you can hide assets from creditors in an irrevocable living trust.
  • Qualifying for government benefits. Whether you need Medicaid to provide for late-in-life care or want to help a loved one with special needs qualify for supplemental security income (SSI), you can store assets in an irrevocable living trust like a Medicaid trust or special needs trust.
  • Estate planning for beneficiaries. You can create an irrevocable living trust to provide an inheritance for your beneficiaries that bypasses probate after you pass away. The trust protects these assets from entering the lengthy probate process and allows your heirs to inherit your trust property during trust administration.

An experienced trusts lawyer can help you determine the type of irrevocable living trust you need to meet your goals, whether you want to begin estate planning, protect your assets, or reduce your personal tax liability.

Types of Irrevocable Living Trusts in Michigan

There are dozens of different trusts recognized in the state of Michigan. A knowledgeable trust lawyer can help you decide what kind of irrevocable living trust is right for you, including:

  • Irrevocable Life Insurance Trust (ILIT)
  • Asset Protection Trust
  • Special Needs Trust
  • Medicaid Trust
  • Charitable Trust
  • QTIP/QDOT Trust
  • Bypass Trust

Each of these trusts offers different benefits for the grantor and beneficiaries, and this list is not comprehensive. The main thing to know with any irrevocable trust is that the trust property no longer belongs to the grantor, and because it is irrevocable, you can’t alter or cancel the trust. Ensure that the trustee managing the trust has your best interests in mind.

The best way to avoid the significant pitfalls of an irrevocable trust is to hire an experienced trust attorney. They can guide you through the different options and determine if an irrevocable living trust is right for your needs. But before you search for “trusts lawyers near me,” know how to find a reputable trusts lawyer.

How Do I Find a Reputable Trust Attorney Near Me?

You can search online for an “estate planning attorney near me” and look on their website for trusts under their practice areas. You can also ask friends and family for recommendations. Read online reviews from multiple sources about each prospective law firm. Look for a law firm that offers:

  • Virtual meetings and a free initial consultation.
  • A custom and comprehensive asset protection strategy.
  • A collaborative team of trust attorneys and staff who work together to provide solutions.
  • Education about trust types, asset protection, and estate planning.

At the Rutkowski Law Firm: Asset Protection & Estate Planning, our team of knowledgeable and experienced trust attorneys can help you create a trust. Contact us today to schedule your free virtual consultation to learn more about your options for an irrevocable living trust in Michigan.

Contact the Rutkowski Law Firm for Help from a Trusts Lawyer in Michigan

Before searching for a “trust attorney near me,” consider the qualified team at the Rutkowski Law Firm: Asset Protection & Estate Planning, serving all of Michigan in estate planning, trust creation, and elder law since 2010. We can help you decide what path is best for you.

Let us help you the Rutkowski Way by protecting everyone you love and everything you own through thoughtful planning. Call us at the Rutkowski Law Firm: Asset Protection & Estate Planning at 248-792-9193 or call us online to schedule your virtual consultation for an irrevocable living trust.

Copyright © 2022. Rutkowski Law Firm: Asset Protection & Estate Planning. All rights reserved.

The information in this blog post (“post”) is provided for general informational purposes only and may not reflect the current law in your jurisdiction. No information in this post should be construed as legal advice from the individual author or the law firm, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting based on any information included in or accessible through this post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country, or other appropriate licensing jurisdiction.

Rutkowski Law Firm: Asset Protection & Estate Planning
40950 Woodward Ave #130
Bloomfield Hills, MI 48304
(248) 792-9193

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