To set up an irrevocable trust, careful planning is required to ensure it aligns with your estate planning goals. The first step is determining whether an irrevocable trust is the right tool for you. This type of trust can help with providing for minors, caring for a disabled family member, minimizing inheritance tax, or supporting charitable giving.
An irrevocable trust is not easily modified or revoked once established, and the settlor gives up control over certain assets in the process. When you set up an irrevocable trust, selecting a trustee is crucial—this should be someone other than the settlor, such as a financial institution or a trusted advisor. Beneficiaries must also be chosen, along with detailed terms and conditions dictating when and how they will receive distributions from the trust.
Once all these details are addressed, the trust is carefully drafted to meet all legal requirements and fulfill the settlor’s intentions. After execution, the trust must be formally funded and administered according to its outlined terms.
If you have any questions about how to set up an irrevocable trust or any other estate law matter, please give us a call at Bononi & Company in Greensburg at 724-832-2499.