Irrevocable Trusts

Advanced Planning to Protect Your Assets and Your Legacy

While many clients are familiar with revocable living trusts, an irrevocable trust is a powerful estate planning tool designed for asset protection, tax planning, and long-term wealth management.

Unlike revocable trusts, irrevocable trusts cannot be easily changed or canceled once created. In exchange for giving up control, you gain significant benefits, such as protection from creditors, potential tax advantages, and long-term planning for your family’s future.

Sheridan Lawyers advises individuals and families in Chester County, Delaware County, and Montgomery County, Pennsylvania on whether an irrevocable trust is the right choice.

What Is an Irrevocable Trust?

An irrevocable trust is a legal arrangement where you transfer assets out of your personal ownership into the trust. Once transferred, the assets no longer belong to you; they are managed by a trustee for the benefit of your chosen beneficiaries.

Because these assets are no longer part of your estate:

They may be protected from certain creditors and lawsuits
They are generally removed from your taxable estate
They can be used to provide for future generations under terms you set in advance

Key Benefits of an Irrevocable Trust

Asset Protection: Shields assets from certain legal claims or creditors
Tax Planning: May reduce estate taxes and provide tax-efficient wealth transfer
Medicaid Planning: Can help preserve assets while qualifying for long-term care benefits (if planned well in advance)
Charitable Goals: Can be used for charitable giving while achieving tax benefits
Multi-Generational Wealth Management: Controls how and when beneficiaries receive assets

When to Consider an Irrevocable Trust

An irrevocable trust may be appropriate if you:

Have significant assets that could be subject to estate taxes
Want to protect assets from potential future lawsuits or creditors
Are planning for long-term care and Medicaid eligibility
Want to leave a lasting legacy for your family or charity under strict guidelines

Irrevocable Trust vs. Revocable Trust

Revocable Trust: Flexible, can be changed at any time; does not protect against taxes or creditors during your lifetime.
Irrevocable Trust: Permanent, cannot be easily altered; offers stronger protection and tax benefits, but requires you to give up control over the assets.

Why Choose Sheridan Lawyers?

Tailored Planning: We evaluate your financial goals, family situation, and risk factors to determine if an irrevocable trust makes sense.
Legal Precision: These trusts are complex. We ensure compliance with Pennsylvania and federal law.
Integrated Approach: We coordinate your trust with your estate plan, tax planning, and healthcare directives.
Experienced Guidance: From drafting to funding the trust, we guide you through every step.