Overview
An irrevocable trust removes assets from your ownership—and therefore from the reach of creditors, lawsuits, divorce, and estate taxes. The philosophy of "control everything, own nothing" uses strategic trust design to maintain practical control while achieving legal protection. Through careful selection of trustees, Trust Protector powers, and distribution standards, you guide your wealth without technically owning it.
Best For
- Professionals with lawsuit exposure (doctors, business owners)
- Those wanting maximum asset protection
- High net worth individuals concerned about estate taxes
- People wanting to protect assets from future creditors
- Those planning for potential long-term care costs
Key Features
- ✓ "Control everything, own nothing" structure
- ✓ Trust Protector with oversight powers
- ✓ Asset protection from creditors and lawsuits
- ✓ Removal from taxable estate
- ✓ Protection from beneficiary divorces
- ✓ Medicaid planning (after look-back period)
- ✓ Strategic trustee selection guidance
📊 Tax Benefits
- ✓ Assets removed from taxable estate
- ✓ Future appreciation excluded from estate
- ✓ Can be structured as grantor trust for income tax
- ✓ Gift tax exemption strategies
- ✓ Generation-skipping potential
Considerations
- Cannot be easily modified once created
- You give up legal ownership of assets
- Must survive look-back period for Medicaid
- Requires careful trustee and Trust Protector selection
- Should be implemented before creditor issues arise