Revocable and irrevocable trusts are at the core of many popular estate planning techniques. A trust is a way of holding assets and allowing for controlled distribution of assets to the beneficiaries. Trusts can be funded before or after the death of the creator, called the “grantor” or “settlor.” The estate planning attorneys of Shatz, Schwartz and Fentin have extensive experience with these trusts, and can help you determine if a trust is appropriate for your estate.

A revocable trust funded before death allows the grantor to have complete access to and control over trust property during life and keeps such property out of the grantor’s probate estate at death. A revocable trust becomes irrevocable at the grantor’s death, and property held in the name of the trust is then administered and distributed according to the provisions in the trust document. The use of a funded revocable trust also avoids the considerable delay in distribution of the estate as well as the often substantial costs associated with probate.

In contrast, property placed in an irrevocable trust cannot be retrieved by the grantor. For this reason irrevocable trusts are generally used only for property which the grantor will not need in his or her lifetime, such as life insurance.

Two of the most common trusts established to benefit a surviving spouse are the credit shelter trust and the qualified terminable interest property trust. Together, these two trusts can maximize the individual estate tax exemption and take advantage of the unlimited marital deduction. Trusts are often used in conjunction with other estate planning. Please call us if you are interested in these or other advanced estate planning.

For assistance contact attorneys Steven J. Schwartz, Timothy P. Mulhern, Ann I. Weber, Carol Cioe Klyman, Michele J. Feinstein, Gary S. Fentin or David K. Webber.