In Minnesota, an Irrevocable Trust cannot be modified or terminated except in very limited circumstances.
Irrevocable Trusts are much more rigid than their Revocable Trust cousin.
However, there are significant additional asset protection benefits that result from this reduced flexibility that cannot be duplicated using only a Revocable Trust.
The significant asset protection benefits are attained by having the Grantor (the person establishing the Trust) transfer assets into their Irrevocable Trust, which will effectively remove all of his/her rights of ownership to the assets within the Trust - and of the Trust itself.
After an Irrevocable Trust successfully removes the in-need person's ownership, those assets become "unavailable" to assistance programs - such as Medicaid - that use "means-testing" to determine a person's eligibility.
NOTE: depending on the type of Irrevocable Trust necessary for the situation, though the removal of ownership may occur immediately, the assets will not be fully removed from the Grantor's financial estate until after a 'waiting period' has elapsed.
An Irrevocable Trust is an advanced Estate Planning tool used primarily to protect the assets of individuals who currently, or one may need, public or government benefits.
The two most common Irrevocable Trusts are the 'Special Needs Trust' and the 'Medicaid Asset Protection Trust' (also known as a 'Medicaid Trust' or 'MAPT').
Check out this helpful information on the significant asset protection benefits of Irrevocable Trusts:
An Irrevocable Medicaid Asset Protection Trust can qualify you for Medicaid while protecting your assets from the high cost of nursing home care - IF it's not too late!
Why should you use a Trust when a Will so much cheaper? A Will IS a basic, and necessary, part of any Estate Plan, but they are no match for the power of Trusts. Check out these 14 Top Benefits of Trusts to find out why!
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