• X
  • Facebook
  • Instagram
  • Youtube
  • LinkedIn
  • Mail
Call us now: (914) 965-1011
Yonkers Real Estate Attorney
  • Areas of Practice
    • Real Estate
    • Real Estate Deed Transfer
    • Landlord and Tenant Law
      • Yonkers Evictions and Landlord Tenant Law
    • Business Formation
      • Business Entities
    • Civil Litigation
      • Real Estate Litigation
      • Enforcement of Promissory Notes
      • Breach of Contract
      • Tortious Interference of Contractual Relations
      • Contract Drafting
      • Non-Competition Agreements
      • Construction Agreements
      • Independent Contractor Agreements
      • Construction Litigation
      • Service Contracts
      • Partner and Shareholder Disputes
      • Dissolving Your Company
      • Negligence Defense
      • Other General Civil Litigation
    • Zoning Matters
    • Lender Representation
    • DHCR
    • Wills, Trusts & Estates
      • Wills
      • Advanced Directives
      • Estate Probate
      • Estate Administration
      • Will Contests
      • Estate Litigation
      • Estate Planning
    • Tax Certiorari
    • Attorney Referrals
  • FAQ
  • Reviews
  • Forms
  • Media
    • Videos
    • Downloadable Newsletters
    • Blog
    • Presentations
    • Current Events
    • Community Outreach
  • Helpful Links
    • Yonkers Evictions and Landlord Tenant Law
  • Contact Us
  • The Team
  • Search
  • Menu Menu
You are here: Home1 / Areas of Practice2 / Wills, Trusts & Estates3 / Estate Planning4 / Irrevocable Trusts

Irrevocable Trusts

Irrevocable trusts have become increasingly used by practitioners as an estate planning tool for asset protection. The irrevocable trust may be used for a variety of purposes. Generally, irrevocable trusts are used by estate planning attorneys to minimize out-of-pocket costs for nursing home expenses. If properly prepared, an irrevocable trust may help an individual qualify for Medicaid and protect your assets from the high costs of nursing home care. You should contact irrevocable trust attorney for asset protection.

Similar to the revocable trust, an irrevocable trust is created by an individual (the settlor) who transfers assets into the trust. Many of the same benefits of revocable trusts also apply to irrevocable trusts, i.e. avoid probate, privacy, save on legal fees and commissions. In addition, however, irrevocable trusts have the added benefit of protecting your assets in the event you need Medicaid and can also help avoid estate taxes.

There are two important differences between the irrevocable trust and revocable trust. First, the irrevocable trust cannot be revoked, reversed or recalled, and there cannot be any distributions of the principal of the trust to the settlor. Therefore, once assets are transferred into an irrevocable trust, they must remain in the trust. Second, you have less control with the irrevocable trust. The settlor does choose the trustee(s) and beneficiary(ies) (typically your adult children or a trusted individual), but the settlor is not the trustee or beneficiary of the trust. The settlor may add assets at any time but taking assets out of the trust is not allowed (the trust may sell and buy assets). However, the settlor is entitled to the income generated by the assets in the trust. It is specifically due to this lack of control that the irrevocable trust has the benefit of protecting your assets from creditors.

Although transferring assets into an irrevocable trust is permanent, there is the ability to get benefits from those assets. This is why properly drafted trust documents and asset transfer documents are crucial. Here is an example:

  • You may want to quality for Medicaid and protect your family home from the high costs of nursing home care, which could cost $200,000.00 per year. You also want to protect your right to live in the home until you need nursing home care. Properly drafting the deed that transfers your home into the irrevocable trust will protect your right to live in your home and will also preserve real estate tax exemptions you may currently have.
  • In addition, once you are living in a nursing home, if no one is living in your home, it may be rented and you are entitled to the income from the trust. You could then use this income to supplement the cost of residing in an assisted living facility rather than a nursing home.

The above example is one of the many ways an irrevocable trust may be used in your estate plan to help qualify for Medicaid and protect your assets from high nursing home costs and/or creditors.

Our firm works closely with our clients to ensure they understand the irrevocable trust and the other various options available. Our focus is to not only understand our clients’ needs and goals, but also ensuring our clients understand their estate plan and the related complex issues. In this important process, our clients are as much involved in the drafting and implementing of their estate plan as we are.

The attorneys at James G. Dibbini & Associates, P.C. have over 20 years of experience in wills, trusts & estates.

In order to learn more about how we can assist you with your wills, trusts and/or estates matter, please feel free to contact us directly.

Recent Posts

  • Urge your legislators to reject Good Cause Eviction!
  • How do I collect rent my tenant owes me?
  • What is the first step in removing a tenant?
  • Do I have to honor the old lease the tenant signed with the former owner?
  • What do I do with a tenant that is always late with their rent?

Any more questions?

"*" indicates required fields

Name*


Download Our
Newsletter Here

Subscribe to Jim’s Newsletter




570 Yonkers Ave | Yonkers, New York 10704
Direct access from street level. ADA Accessible bathrooms on premises.
Tel: (914) 965-1011 | Fax: (914) 965-0019 | e-mail: jdibbini@dibbinilaw.com

Now Serving These Locations:
Yonkers | Bronx

GET DIRECTIONS

© James G. Dibbini & Associates, P.C.

This web site is designed to provide general information only and to help in the choice of appropriate legal counsel. The information contained herein should not be construed as legal advice. Legal jurisdictions differ on major and minor aspects of the law and each legal situation is unique; requiring that all legal situations be addressed with qualified legal counsel. Prior results do not guarantee a similar outcome. Submitting or receiving information or questions through this web site does not create an attorney client relationship. No attorney client relationship will exist unless you meet with one of our attorneys and sign a retainer agreement. Please do not submit any information that is case specific, personal or confidential. If you have legal problem or issue you should always consult with a qualified lawyer experienced in the appropriate area of law. We would be glad to discuss your specific situation with you, should you so desire, by phone at (914) 965-1011.

Disclaimer | Site Map | Contact Us | Privacy Policy

Scroll to top

We use cookies to provide and improve our services. By using our site, you consent to cookies.

OKLearn More×

Cookie and Privacy Settings



How we use cookies

We may request cookies to be set on your device. We use cookies to let us know when you visit our websites, how you interact with us, to enrich your user experience, and to customize your relationship with our website.

Click on the different category headings to find out more. You can also change some of your preferences. Note that blocking some types of cookies may impact your experience on our websites and the services we are able to offer.

Essential Website Cookies

These cookies are strictly necessary to provide you with services available through our website and to use some of its features.

Because these cookies are strictly necessary to deliver the website, refusing them will have impact how our site functions. You always can block or delete cookies by changing your browser settings and force blocking all cookies on this website. But this will always prompt you to accept/refuse cookies when revisiting our site.

We fully respect if you want to refuse cookies but to avoid asking you again and again kindly allow us to store a cookie for that. You are free to opt out any time or opt in for other cookies to get a better experience. If you refuse cookies we will remove all set cookies in our domain.

We provide you with a list of stored cookies on your computer in our domain so you can check what we stored. Due to security reasons we are not able to show or modify cookies from other domains. You can check these in your browser security settings.

Google Analytics Cookies

These cookies collect information that is used either in aggregate form to help us understand how our website is being used or how effective our marketing campaigns are, or to help us customize our website and application for you in order to enhance your experience.

If you do not want that we track your visit to our site you can disable tracking in your browser here:

Other external services

We also use different external services like Google Webfonts, Google Maps, and external Video providers. Since these providers may collect personal data like your IP address we allow you to block them here. Please be aware that this might heavily reduce the functionality and appearance of our site. Changes will take effect once you reload the page.

Google Webfont Settings:

Google Map Settings:

Google reCaptcha Settings:

Vimeo and Youtube video embeds:

Other cookies

The following cookies are also needed - You can choose if you want to allow them:

Accept settingsHide notification only