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 transfer assets into their Irrevocable Trust, which will effectively remove all of his/her rights of ownership to the assets - and of the Trust itself.
(NOTE: depending on the type of Irrevocable Trust necessary for the situation, for some the removal of ownership will occur immediately; while for others the removal of ownership will occur only 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.
After an Irrevocable Trust successfully removes the in-need persons ownership, those assets become "unavailable" to assistance programs - such as medicaid - that use "means-testing" to determine a person's eligibility.
The two most Common Irrevocable Trusts are the Special Needs Trust and the Medicaid Asset Protection Trust.
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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