Why Would You Set Up An Irrevocable Trust?

If you are researching trust planning, you are probably encountering a lot of information about revocable living trusts. Those are the most common types of trusts, and can have value for people all up and down the wealth scale. The primary benefit of revocable living trusts is probate avoidance -- i.e., keeping your affairs out of court if you can't manage them any more, either because you have suffered some sort of long term incapacity or have passed away. Our clients frequently ask us whether revocable living trust can also provide asset protection in the event of a lawsuit, or estate tax avoidance. The answer is to those questions is no. To obtain those kinds of benefits, you need to create an irrevocable trust. In this video, Denver estate planning attorney Dan McKenzie of The McKenzie Law Firm, LLC (303-578-2745, www.themckenziefirm.com) discusses irrevocable trust planning, what it can accomplish, and who might benefit from it.