There are several people, nowadays, who want to know the benefits of trust as a part of their estate plan. There are several kinds of trusts available among which the most basic are revocable and irrevocable.
Every trust is labeled as revocable or irrevocable. The irrevocable trusts are there for your asset protection and estate tax reduction. The assets involved in the irrevocable trusts are no longer owned by the grantor.
You can also hire a professional of estate planning attorney orange county CA who will better guide you regarding the irrevocable living trust and will also assist you till you are done with your work.
Whenever an irrevocable living trust in California is created, a new entity is formed having its own federal tax id number. The entity created is not basically an extension of the creator. It’s a unit that can accept and manage the assets.
Once the trust is created and funded, it cannot be amended or revoked. The parties who have access to the trust assets are trustees and also the beneficiaries.
The grantor is not given the access to the assets and is also not permitted to be the trustee or the beneficiary. If the assets are in the irrevocable trust then they are fully protected from the creditors and litigants.
There is also no involvement of the creditors in irrevocable trusts so the assets are protected from the financial vultures. If you remove your assets from your name to the newly formed irrevocable trust then the estate tax level also reduced by that same amount.
Just by moving your assets from your name to the newly created irrevocable trust, all the assets from your estate are removed even if you are enjoying their access during your life. You can also check this useful reference to know more about the irrevocable living trust.