Irrevocable Trust Questions
When the creator of the irrevocable trust (the grantor) establishes the trust, all control of the assets within the trust released by the grantor. Because the trust is no longer controlled by the grantor and has yet to be in the control of the beneficiaries, it becomes its own tax entity and will pay its own taxes. The tax payments are usually handled by a trustee of the trust. Take a look at the questions below in regards to irrevocable trusts that have been answered by Experts.
Can an irrevocable trust be broken by the owner of the trust in California? Can listed beneficiaries be excluded from the trust?When the word broken is used, that tends to widen the spectrum of possibilities. When a person does something unlawful, there is typically a law that provides a remedy to those who are harmed by the unlawful actions. The only way to revoke an irrevocable trust would be if all the beneficiaries were to give their permission or by a court order.
Irrevocable trusts don't require the assets if the trust to be preserved. If there is nothing left of the trust before the lifetime beneficiaries death, there is nothing that can be done. Beneficiaries of the irrevocable trust cannot be excluded from any benefits that have been assigned to the beneficiary by the trust.
I am the Trustee in an Irrevocable Trust set up in 1990 for a learning disabled young man who married my daughter in 1992 who is also learning disabled. I am considering 'revoking' the irrevocable trust and turning over the fund assets at my death or sooner. How can I do that?Having the irrevocable trust revoked will prove to be tougher than you think. The name of the trust is irrevocable for a reason. In order to revoke the irrevocable trust, you would have to petition the court. All parties invested in the trust must partake in the petition. You will need a very good reason before the judge will consider changing the trust. If you tell the judge that you have limited trustees, the judge will more than likely appoint a professional trustee.
What happens if there is an Irrevocable Trust and the house that is in the trust is sold due to a death of the spouse and the next house is not put into the trust?The trustee of the irrevocable trust is the only person who is allowed to transfer assets out or transfer assets into the trust. If someone besides the trustee tried to transfer assets, the transfer wouldn't be effective. Anytime the trustee transfers assets from the irrevocable trust, the transfer must comply with the terms of the trust. If the trustee conducts acts outside of his authority, the trustee could be held liable a beneficiary of the trust. Other people listed in a trust would be able to claim liable to the trustee if the trustee affected any remaining trust.
How can I terminate an irrevocable trust holding a $38000 lifetime annuity?If you are the trustee of the irrevocable trust, you will need the consent to all parties involved in the trust. Once you have everyone's consent, you can draft the "Revocation of trust". You can get a form from legal websites like uslegalforms.com or you can go to your local law library. It is always best to use an attorney when you are handling this type of form.
Once the form is filled out, all parties must sign and the form must be notarized. You will then file the form with the court. The trust would then be considered revoked.
Revoking the trust is rather straight forward, however it is just good practice to use an attorney. Typically, the cost would only be a few hundred dollars.
An irrevocable trust is one of many trusts available today. When a person wants to establish a trust, many questions arise about the needs of the grantor and the advantages of each trust. If you are unsure about an irrevocable trust or simply have questions, you should ask an expert for assistance in selecting the most appropriate trust for your needs.