This form is an agreement between the trustor and the trustee to create an irrevocable living trust.The purpose of the creation of the trust is to provide for the convenient administration of certain assets without the necessity of court supervision in the event of the trustor incapacity or death. Other provisions within the document include: trust assets, the abstract of the trust, and suggested trust registration.
What is an Irrevocable living trust?
A living trust is a legal document that individuals (grantors or trustors) prepare to create a fund of assets they want to hold during their lifetime and bequeath to the named people (beneficiaries) after they pass away. They assign a third party (trustee) to manage these assets and supervise their transfer at a predetermined time. A living trust are an essential tool for estate or property planning as an alternative to wills; allowing owners to distribute their assets (estate, stocks, bank accounts, etc.) as they wish and bypass state court probate procedures if they die intestate.
Trusts can be either revocable or irrevocable. An irrevocable living trust is the stricter form of property transfer as it excludes the grantor’s opportunity to modify anything in the agreement or to terminate it once set up. Though both types have similar terms, you should be aware of some important differences.
Revocable vs. irrevocable trust
As the name implies, a revocable trust allows the grantor to modify its terms (for example, transfer some assets out or add some extra ones, change the beneficiaries and trustees) or cancel it at any moment. Such terms are wholly different from those that apply to an irrevocable living trust, which must remain unchanged and without a termination option from the moment you set it up. However, in some states, the grantor can change the document with the beneficiary’s permission or by court order.
Both of these property grants have their benefits:
Types of irrevocable trusts
There are several irrevocable trust examples:
- Irrevocable life insurance trusts;
- Charitable trusts;
- Lifetime gifting trusts (including the grantor-retained annuity, spousal lifetime access, and qualified personal residence trusts);
- Testament trust created after the grantor’s death.
- Personal details of the parties involved (grantor, beneficiary, trustee, and successor trustee);
- Description of the transferred property items.
Living trust forms
To set up a living trust, the grantor must ensure the accuracy of the necessary paperwork. US Legal Forms offers only verified printable and electronically editable legal templates specific to your state regulations. Download our Trust Irrevocable Form and provide the following information:
The agreement template we offer is a universal multi-state do-it-yourself form. If you want to add additional terms to the contract or amend any existing ones, though, please consult a legal advisor to do this task correctly.
A Kentucky Living Trust — Irrevocable is a legal arrangement created in the state of Kentucky, where assets are transferred into a trust and managed by a trustee for the benefit of the beneficiaries. Unlike a revocable living trust, an irrevocable living trust cannot be easily modified or revoked by the granter once it is established. An irrevocable living trust in Kentucky provides a range of benefits such as asset protection, protection against estate taxes, and the ability to control and distribute assets after death. By placing assets into an irrevocable trust, the granter transfers legal ownership to the trust, therefore removing these assets from their taxable estate. In Kentucky, there are different types of irrevocable living trusts, each serving different purposes: 1. Medicaid Irrevocable Trust: Also known as a Medicaid Asset Protection Trust, this type of irrevocable trust is designed to protect an individual's assets from being counted for Medicaid eligibility purposes. By transferring assets into this trust, individuals can potentially qualify for Medicaid benefits while still preserving their assets for their intended beneficiaries. 2. Charitable Remainder Trust: This type of irrevocable trust allows individuals to donate assets, such as cash or property, to a charitable organization while still retaining income from those assets during their lifetime. Upon the death of the granter or after a specified period of time, the remaining assets are transferred to the designated charity. 3. Special Needs Trust: A special needs trust aims to protect the assets of an individual with special needs while allowing them to qualify for government benefits such as Medicaid or Supplemental Security Income (SSI). This trust provides financial support for the beneficiary's supplemental needs without disqualifying them from important public assistance programs. 4. Granter Retained Annuity Trust (GREAT): This type of irrevocable trust allows individuals to transfer assets while retaining an annuity payment for a specific period of time. At the end of the specified term, the remaining assets pass to the designated beneficiaries without gift or estate tax consequences. In conclusion, a Kentucky Living Trust — Irrevocable is a powerful estate planning tool that can provide asset protection, tax advantages, and control over the distribution of assets. It is important to consult with an experienced estate planning attorney to understand the specific options and implications of establishing an irrevocable trust in Kentucky.
