What Is An Irrevocable Living Trust In Georgia?

Irrevocable Living Trust Georgia - What Is An Irrevocable Living Trust - How Does An Irrevocable Living Trust Work - How Much Does An Irrevocable Living Trust Cost

What is an irrevocable living trust? 

In this article, you’ll learn about: 

  • what an irrevocable living trust is
  • how they work
  • how much they cost
  • irrevocable vs revocable living trusts
  • who needs one
  • who owns the property once it’s in the trust
  • when does it end 

Keep scrolling to learn more.

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What Is An Irrevocable Living Trust In Georgia?

An irrevocable living trust in Georgia is a legal arrangement.

It’s where a person (the trustor) places assets into a trust.

Once the trust is set up, this trust cannot be changed or canceled.

The trustee manages these assets for the benefit of the named beneficiaries.

Irrevocable living trusts are irrevocable (clearly).

This means that once assets go into it, the grantor loses control over those assets.

This type of trust is often used for estate planning.

And it helps manage and protect assets and offers tax advantages. 

How Does An Irrevocable Living Trust Work?

The trust is managed by a trustee for the benefit of designated beneficiaries.

Once established, the grantor cannot change or cancel the trust.

This is what distinguishes it from a revocable trust.

This setup offers benefits like asset protection from creditors and potential tax advantages.

The assets in the trust bypass probate in Georgia.

They directly transfer to beneficiaries upon the grantor’s death.

This ensures privacy and efficiency for your family.

But, the grantor loses control over the assets once they are in the trust.

The trustee is the one who is in control of the assets in the trust.

How Do They Protect Your Assets?

Irrevocable living trusts protect your assets in several ways:

  1. Ownership Transfer: Once you place assets into the trust, they are no longer yours. This change in ownership means creditors can’t claim these assets for your debts.
  2. Legal Shielding: The trust owns the assets, not you. So, they are generally protected from lawsuits against you.
  3. Estate Taxes: These trusts can help cut estate taxes. This keeps more wealth within the trust for beneficiaries.
  4. Government Benefits Eligibility: You will not own these assets directly. So, you might qualify for certain government benefits like Medicaid.

How Do They Help Your Taxes?

Irrevocable living trusts can help with taxes in several ways:

  1. Estate Tax Reduction: Assets in the trust are not part of your estate. So, they help by lowering estate taxes.
  2. Gift Tax Benefits: Transferring assets into the trust may count as a gift. This can have favorable tax implications.
  3. Income Tax: Trusts may be taxed differently than your income. Sometimes, this results in lower income taxes compared to individual taxation.
  4. Generation-Skipping Tax: These trusts can help avoid taxes on large transfers to grandchildren.

How Much Does An Irrevocable Living Trust Cost In Georgia

The cost of setting up an irrevocable living trust in Georgia ranges from $2,000 to $3,500.

This cost depends on the complexity of the trust and the rates of the trust attorney drafting it.

Extra costs may arise for more complex estate plans or unique assets.

Irrevocable Trust vs Revocable Trust

These trusts are different in their flexibility and control over assets.

Let’s look at an irrevocable living trust vs a revocable trust.

  • Irrevocable Living Trust: Once set up, you can’t change it. It offers asset protection from creditors and reduces estate taxes. This trust permanently transfers your assets out of your personal ownership.
  • Revocable Living Trust: You can alter or cancel it anytime. It simplifies asset management and avoids probate after death. But, it doesn’t protect assets from creditors. And it has less tax benefits compared to an irrevocable trust.

Both trusts allow you to specify how your assets get distributed after your death.

The choice depends on your need for flexibility versus asset protection and tax planning.

FAQs About Irrevocable Living Trusts In Georgia

Here are other questions that our trust clients ask us about irrevocable living trusts.

Why Would Someone Want An Irrevocable Trust?

Someone would want an irrevocable trust for these reasons:

  • Asset Protection: It shields assets from creditors and legal judgments.
  • Estate Taxes: It helps reduce estate taxes by moving assets out of the taxable estate.
  • Control Distribution: It allows control over how and when heirs receive assets.
  • Avoid Probate: It avoids the probate process, ensuring privacy and faster distribution.
  • Government Benefits: It can help qualify for Medicaid by not counting as personal assets.
  • Charitable Giving: It facilitates charitable giving in a tax-efficient manner.

Read More: Does Your House Have To Be Paid Off To Put It In A Trust

Who Owns The Property In An Irrevocable Trust?

In an irrevocable trust, the property is legally owned by the trust itself.

It is not owned by the person who created the trust (grantor).

Once property gets placed in the trust, it is under the control of a trustee.

The trustee manages it according to the trust’s terms.

The trustee’s role is to handle the trust property for the benefit of the beneficiaries.

The beneficiaries will receive the assets or income from the trust.

The grantor gives up all rights and control over these assets once they are in the trust.

This separation of ownership is what distinguishes an irrevocable trust.

And, it’s what provides its various legal and financial benefits.

Read More: How To Put A House In A Trust

When Does An Irrevocable Trust End?

An irrevocable living trust ends when one of the following occurs:

  1. Term Completion: If the trust has a specified term, it ends when that term expires.
  2. Purpose Achieved: The trust concludes when its stated purpose is fulfilled.
  3. Asset Depletion: If the trust runs out of assets or funds, it naturally ends.
  4. Beneficiary Agreement: Sometimes, if all beneficiaries agree, they can end the trust.
  5. Legal Action: In rare cases, a court can terminate the trust due to specific legal reasons.

Get A Georgia Irrevocable Living Trust

If you want an irrevocable living trust, fill out the form below. 

At The Hive Law, we understand the importance of:

  • protecting your hard-earned assets 
  • ensuring your family’s future
  • not losing everything to creditors and lawsuits
  • properly (and legally) distributing assets 

We only accommodate a limited number of clients each month.

So don’t miss your opportunity to work with our trust lawyers.

Benefits of our trust services:

  • Tailored solutions to fit your unique needs and goals
  • Expert guidance in navigating complex tax and legal matters
  • Preservation of your wealth for future generations
  • Streamlined asset distribution according to your wishes

Avoid the pitfalls of inadequate estate planning strategies:

  • Creditors seizing your assets
  • Lawsuits jeopardizing your family’s financial security
  • Family disputes over inheritance
  • Costly and time-consuming probate processes

Talk soon.

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