• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Click here to learn how German Law is supporting clients during the COVID-19 pandemic.
  • Home
  • Our Firm
    • About Our Firm
    • Advantages of Working With Our Firm
    • Attorney and Staff Profiles
    • Communities We Serve
      • Minnesota
        • Bemidji
        • Crookston
        • East Grand Forks
        • Fertile
        • Thief River Falls
      • North Dakota
        • Devils Lake
        • Dickinson
        • Grafton
        • Grand Forks
        • Minot
    • Job Opportunities
    • Speaker Connection
  • Estate Planning
    • Asset Protection
    • Business Planning
    • Elder Law & Medicaid Services
    • Estate And Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses & Farms
    • Financial Planning Assistance
    • Incapacity Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Pet Planning
    • Probate
    • SECURE Act
    • Special Needs Planning
    • Trust Administration
  • Elder Law
    • Are You A Caregiver
    • Conservatorship
    • Coping with Alzheimer’s
    • Hospice Care
    • Life Care Planning Services
    • Medicaid Benefits
    • Nursing Home Planning
    • Veterans Benefits
  • Seminars/Webinars
  • Resources
    • Client Resources
      • Estate Planning Resources for Farmers
      • Elder Law Resources
        • Bemidji
        • Grand Forks Elder Law
        • Minot Elder Law
        • Thief River Falls Elder Law
      • Estate Planning Checklist
      • Is Your Estate Plan Outdated?
      • Probate Checklist
      • Probate Resources
        • Bemidji Probate
        • Grand Forks Probate
        • Minot Probate
        • Thief River Falls Probate
      • Top 10 Estate Planning Techniques
    • DocuBank
    • Elder Law Reports
    • Frequently Asked Questions
      • Asset Protection
      • Business Planning
      • Business Succession Planning
      • Elder Law
      • Estate Planning
      • Families Without an Estate Plan
      • Financial Planning
      • Incapacity Planning
      • Including Philanthropy in Your Estate Plan
      • LGBTQ Estate Planning
      • Medicaid Planning
      • Nursing Home Planning
      • Power of Attorney
      • Probate
      • Trusts
      • Trust Administration & Probate
      • Wills
    • Newsletters
    • Professional Resources
    • Published Books
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Estate Planning for Niches
      • Trust Administration
  • Reviews
    • Our Reviews
    • Review us
  • Contact Us
  • Blog

GermanLawGroup

Estate Planning & Medicaid Attorneys in Grand Forks , North Dakota

Call us today(800) 774-7576

  • Facebook
  • Twitter
  • Linkdin
Attend A Free Webinar
Home » Why Would I Want a Trust to Be Irrevocable?

Why Would I Want a Trust to Be Irrevocable?

May 3, 2022Trust

Grand Forks trust lawyers

A living trust is a common addition to the average estate plan. If you are contemplating the creation of a living trust, you will need to decide if your trust will be a revocable living trust or an irrevocable living trust. As the name implies, an irrevocable living trust is one that cannot be modified or revoked by the Trustor once the trust is established. You may be wondering why you would want to make your trust irrevocable. The Grand Forks trust lawyers at German Law explain why you might want to make a trust irrevocable.

When Is Making a Trust Irrevocable a Good Idea?

Questioning the choice to make a trust that you cannot modify and can never revoke is understandable; however, there are situations in which an irrevocable living trust is necessary to achieve an important estate planning goal, such as:

  • Medicaid Planning. Almost half of all seniors in nursing homes across the country depend on Medicaid to help defray the high cost of that care. Qualifying for Medicaid, however, can be problematic for a senior because eligibility is based, in part, on an applicant’s income and assets. If your non-exempt assets exceed the limit at the time you apply for Medicaid, you will be forced to “spend-down” those assets, which essentially means you must rely on the assets to help cover your nursing home costs until you deplete them. One way to avoid that outcome is to establish a Medicaid trust as part of a Medicaid planning component in your estate plan. A Medicaid trust is an irrevocable living trust that protects your non-exempt assets and allows you to qualify for Medicaid when you need it. The Medicaid program will only recognize the trust as a legitimate Medicaid trust if it is irrevocable.
  • Asset Protection. Asset protection should be a consideration in every estate plan because there are likely more potential threats to your assets than you realize. Divorce, economic downturns, creditors, and even spendthrift beneficiaries can all create a threat to your hard-earned assets. By transferring assets into an irrevocable living trust, you remove those assets from your estate, thereby placing them out of the reach of the numerous threats that could be lurking around the corner. The concept is simple. If you no longer have any legal ownership interest in the assets because they are now owned by the trust, they cannot be lost to divorce, creditors, or any of the numerous other potential threats.
  • Special Needs Planning. If you are the parent of a child with special needs, you already know some of the challenges faced when raising a child with special needs. You also probably already have some idea of the costs involved and the time needed. Consequently, for the parents of a child with special needs, estate planning takes on a heightened importance. While your child is a minor, obtaining assistance from state and federal programs such as Medicaid and Supplemental Security Income is crucial. Depending on the type and severity of your child’s disability, your child may continue to need that assistance as an adult. Unfortunately, the law considers your child a legal adult when he/she turns 18 which means eligibility for state and federal assistance programs will be based, in part, on your child’s income and assets. Though the income limits won’t be a problem, the asset limit could be if you, or another well-meaning relative, gift assets directly to your child in an estate plan or at any other time. Your child could lose his/her eligibility for much needed assistance. The good news is that a Special Needs Trust can help. A special needs trust is an irrevocable living trust that supplements the care and assistance that an individual receives from other sources. The trust must be irrevocable, however, for the state/federal government will recognize it as a special needs trust but if it is drafted properly, the assets held in the trust will not jeopardize the beneficiary’s eligibility for assistance.  

Contact Grand Forks Trust Lawyers

Please join us for an upcoming FREE seminar. If you have additional questions or concerns about irrevocable trusts, contact the Grand Forks living trust lawyers at German Law by calling 701-738-0060 to schedule an appointment.

  • Author
  • Recent Posts
Raymond German, Estate Planning Attorney
Latest posts by Raymond German, Estate Planning Attorney (see all)
  • Estate Plan Updates Following a Divorce - May 19, 2022
  • Trust Administration Basics — What Is Self-Dealing? - May 17, 2022
  • What Do I File with the IRS If I Am the Executor of an Estate? - May 12, 2022

Other Articles You May Find Useful

How Can a Trust Help Protect an Inheritance?
How Can a Trust Help Protect an Inheritance?
Should My Trustee Be Able to Make Discretionary Decisions?
Should My Trustee Be Able to Make Discretionary Decisions?
Can a Charity Be a Beneficiary?
Can a Charity Be a Beneficiary?
Picking a Trustee for Your Child’s Inheritance
Picking a Trustee for Your Child’s Inheritance
Is a Trustee Paid?
Is a Trustee Paid?
Do I Need to Name a Successor Trustee?
Do I Need to Name a Successor Trustee?

Primary Sidebar

TESTIMONIALS

Client Review
August 24, 2020
    

Needed to come in to get specific advice for our needs. The attorney spoke to us in terms we could understand, coming to our level and did not make up feel uncomfortable. They were very considerate and caring. We didn’t feel rushed. We felt like they cared and knew what they were doing.

default image
C.P., Minnesota
Client Review
August 24, 2020
    

We were wonderfully satisfied. Wayne did an outstanding job of explaining, diagramming and answering questions and concerns.

default image
JW & CD, North Dakota
Client Review
August 24, 2020
    

They were courteous, efficient, knowledgeable, and trustworthy.

default image
D.T., Minnesota
Client Review
August 24, 2020
    

Very helpful. Our children and us are are confident in your group.

default image
-Anonymous, Fargo, North Dakota
Client Review
August 24, 2020
    

"Very professional, covered all, expertise, friendly, peace of mind now."

default image
- Anonymous, North Dakota
Client Review
August 24, 2020
    

So much of a client's high or low opinion of an organization depends on their welcomed feeling. I felt that every time I visited the office, every person I talked with listened and took action on my concern or questions! They were also very friendly.

default image
~J.R., Grand Forks, ND
Client Review
August 24, 2020
    

From phone calls to signing the final documents I was treated with respect, kindness, and understanding by Wayne & Jenn. Every business that wants their business represented well should have someone like Jenn & Wayne. They both made me feel relaxed and assured I was at the right place at the right time at this time in my life. 

default image
~ Deborah Rucinksi, North Dakota 
Client Review
August 24, 2020
    

All of the paperwork was completed in a timely matter. Wayne was very good in explaining the trust to us. 

default image
~Anonymous
Client Review
August 24, 2020
    

Thank you for taking care of my finances after I am gone. I worried about probate once; hopefully this has been solved. Everyone was very polite and helpful. Thank you Katie for answering my questions, and also Jenn.

default image
- Anonymous
Client Review
August 24, 2020
    

This Avvo rating is killer and so deserved! You are the best brother! The only thing is I think the 10 rating is too low, in my book you go to 11! Congratulations on the award, you should be very very proud. See you at your Holiday party, thx for the invite.

default image
Anthony G., Los Angeles, CA
Client Review
August 24, 2020
    

Everyone at German Law was helpful and pleasant. I felt good about my decision, I thought I was doing the right thing for myself & my family. Wayne took his time and didn't rush, which is good because a lot of this can be over people's heads.

default image
A.W., Red Lake Falls, MN
Client Review
April 15, 2021
    

Excellent

Very interesting, informative and valuable information and ideas.

Valuable information.

default image
RP
Client Review
April 15, 2021
    

5 STARS! Thanks for allowing this to be on a webinar! Very interested in this topic.

Great Estate Planning Guide

default image
SD
<
>

Subscribe to Our Blog

  • This field is for validation purposes and should be left unchanged.

FREE ESTATE PLANNING WORKSHEET

  • This field is for validation purposes and should be left unchanged.

Where We Are

German Law
2650 32nd Avenue South, Suite O
Grand Forks, ND 58201
Phone: (701) 738-0060
Fax: (701) 738-0064

See Larger Map Get Directions

Office Hours

Monday8:00 AM - 12:00 PM and 1:00 PM - 5:00 PM
Tuesday8:00 AM - 12:00 PM and 1:00 AM - 5:00 PM
Wednesday8:00 PM - 12:00 PM and 1:00 AM - 5:00 PM
Thursday8:00 AM - 12:00 PM and 1:00 PM - 5:00 PM
Friday8:00 AM - 12:00 PM

Map

german_sidbr_map

Footer

  • Speaker Connection
  • Advantages of Working With Our Firm
  • About The American Academy
  • Sitemap
  • Contact Us

Connect to Us

  • Facebook
  • Twitter
  • Linkdin
footer-logo

© 2022 German Law
All Right Reseved.

Attorney Advertisement