How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask socrateaser Your Own Question

socrateaser
socrateaser, Lawyer
Category: Family Law
Satisfied Customers: 34350
Experience:  Retired (mostly)
10097515
Type Your Family Law Question Here...
socrateaser is online now
A new question is answered every 9 seconds

I currently have several revocable trusts and would like to

Customer Question

I currently have several revocable trusts and would like to consider making them irrevocable.
I would like to be the trustee of such trusts even though I would be the grantor and beneficiary. I understand that this can be done but there may be implications
By doing this. Reason for doing this is to protect assets. No intent to avoid taxes.

What are the legal and tax implications should I go this route?
Submitted: 2 years ago.
Category: Family Law
Expert:  socrateaser replied 2 years ago.
There are probably a thousand different ways to write a trust instrument to deal with certain tax and asset protection issues, but the principal result of declaring a trust irrevocable is to permanently deprive the grantor of all rights and authority in the trust property.

For practically the entire history of the Internal Revenue Code, the amount of assets that could be transfered by an inter-vivos (living) trust without incurring some immediate tax liability was severely limited. However, for the 2012 tax year, it is possible to transfer up to $5,000,000 via a trust without any gift tax liability. So, at the moment declaring a trust irrevocable may not have the same sort of adverse consequence that would typically dissuade a grantor from placing property into an irrevocable trust.

That said, there is another issue which may create a problem for a grantor seeking to protect assets from creditor attack. The Florida Uniform Fraudulent Transfer Act makes it possible for a creditor to force a trust to disgorge assets transferred within four years of the date that a creditor claim arises, if the transfer was originally made for less than "reasonably equivalent value" -- which basically means something in the neighborhood of fair market value.

So, if you are trying to avoid a specific creditor who already has a claim against you, then the irrevocable trust declaration may not produce the desired result.

Hope this helps.

NOTICE: My goal here is to educate the public about the law. Please help me in this effort by clicking Accept (or, click on one of the happy smiley faces/stars/etc., if applicable) for my Answer to your Question. If you have a subscription account, clicking Accept does not create any additional charge. It merely gets me credit for my Answer.

And, if you need to contact me again, please put my user id at the beginning of your question ("To Socrateaser"), and the system will send me an alert. Thanks!

Please Click the following link for IMPORTANT LEGAL INFORMATION.

socrateaser, Lawyer
Category: Family Law
Satisfied Customers: 34350
Experience: Retired (mostly)
socrateaser and 8 other Family Law Specialists are ready to help you
Customer: replied 2 years ago.
Have further questions/comments, but need time to get my writing organized to present as clearly as you replied to me.
Expert:  socrateaser replied 2 years ago.
I am at your service....

NOTICE: My goal here is to entertain while educating the public about the law. Your positive feedback to the website is appreciated. If you need to contact me again, please put my user id at the beginning of your question ("To Socrateaser"), and the system will send me an alert. Please Click the following link for IMPORTANT LEGAL INFORMATION. Thanks and best wishes!



JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Not only did he answer my Michigan divorce question but was also able to help me out with it, too. I have since won my legal case on this matter and thank you so much for it. Lee Michigan
< Last | Next >
  • Not only did he answer my Michigan divorce question but was also able to help me out with it, too. I have since won my legal case on this matter and thank you so much for it. Lee Michigan
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
 
 
 

Meet The Experts:

 
 
 
  • Ely

    Counselor at Law

    Satisfied Customers:

    8085
    Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
< Last | Next >
  • http://ww2.justanswer.com/uploads/RA/ratioscripta/2012-6-13_2955_foto3.64x64.jpg Ely's Avatar

    Ely

    Counselor at Law

    Satisfied Customers:

    8085
    Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
  • http://ww2.justanswer.com/uploads/LA/LawTalk/2012-6-6_17379_LawTalk.64x64.JPG LawTalk's Avatar

    LawTalk

    Attorney and Counselor at Law

    Satisfied Customers:

    6424
    27+ years legal experience. I remain current in Family Law through regular continuing education.
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Lawyer

    Satisfied Customers:

    6336
    25 years of experience helping people like you.
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    5987
    I provide family and divorce law advice to my clients in my firm.
  • http://ww2.justanswer.com/uploads/MU/multistatelaw/2011-11-27_173951_Tinaglamourshotworkglow102011.64x64.jpg Tina's Avatar

    Tina

    Lawyer

    Satisfied Customers:

    5773
    JD, 15 years legal experience including family law
  • http://ww2.justanswer.com/uploads/BrianTMayer/2010-01-06_200119_BM.jpg Brandon M.'s Avatar

    Brandon M.

    Family Law Attorney

    Satisfied Customers:

    3810
    Attorney experienced in all aspects of family law
  • http://ww2.justanswer.com/uploads/TU/TUSA/2012-6-6_55219_test.64x64.png Thoreau (T-USA)'s Avatar

    Thoreau (T-USA)

    Lawyer

    Satisfied Customers:

    2634
    Attorney
 
 
 

Related Family Law Questions