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 Pennsylvania Living Trust — Irrevocable is a legally binding document created by an individual, known as the granter or settler, to manage and distribute their assets during their lifetime and after their death. This type of trust is irrevocable, meaning that once it is established, it cannot be modified, amended, or revoked without the consent of all named beneficiaries. Key terms: 1. Pennsylvania Living Trust: A trust created under the laws of Pennsylvania that allows individuals to transfer assets and properties to a separate legal entity while retaining control over them during their lifetime. 2. Irrevocable Trust: Unlike a revocable trust, an irrevocable trust cannot be altered or revoked once established without the unanimous consent of the beneficiaries. Once assets are transferred to an irrevocable trust, the granter relinquishes ownership and control over them. 3. Granter/Settler: The person who establishes the trust and transfers their assets into it. The granter determines the terms, beneficiaries, and how the assets are managed and distributed. 4. Assets: Any property, real estate, investments, bank accounts, or other valuables that the granter transfers to the irrevocable trust. Once transferred, these assets are legally owned by the trust and managed by the designated trustee. 5. Beneficiaries: Individuals or organizations named by the granter to receive the benefits or assets from the trust. Beneficiaries can include family members, friends, charities, or even the granter themselves. Types of Pennsylvania Living Trust — Irrevocable: 1. Medicaid Planning Trust: This type of irrevocable trust is specifically designed to protect and preserve assets in the event the granter requires long-term care and needs to qualify for Medicaid benefits. By transferring assets into the trust, the granter can prevent those assets from being counted for Medicaid eligibility purposes. 2. Special Needs Trust: Also known as a supplemental needs trust, this irrevocable trust is created to provide financial support for a disabled or special needs beneficiary without jeopardizing their eligibility for government benefits such as Medicaid or Supplemental Security Income (SSI). 3. Charitable Remainder Trust: This trust allows the granter to donate assets, receive potential tax benefits, and still receive income generated by those assets during their lifetime. After the granter's death, the remaining assets are transferred to a charitable organization. 4. Life Insurance Trust: This type of irrevocable trust holds life insurance policies owned by the trust rather than the granter. It allows the proceeds from the life insurance policies to be excluded from the granter's taxable estate, potentially reducing estate taxes. In conclusion, a Pennsylvania Living Trust — Irrevocable is a powerful estate planning tool that enables individuals to protect their assets, provide for beneficiaries, and potentially reduce estate taxes. With various types of irrevocable trusts available, individuals can tailor their estate plans to meet their unique needs and goals. Consulting with an experienced estate planning attorney is recommended to ensure compliance with Pennsylvania state laws and to draft a trust that reflects the granter's wishes.
