Irrevocable Trusts Are Terrible! (Here's Why)

Comments · 128

• CZ

  @cz8024 · 3 months ago

  So it isn’t the trust that is the problem, it’s the people.

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• KA

  @karenhardie1132 · 7 months ago

  Irrevocable trusts are not terrible. They protect The Medicaid Recovery Act from taking your assets when you go to a  nursing home.

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• RO

  @robertavery6783 · 8 months ago

  Your major disadvantage where the trustee and beneficiaries must agree to any change can actually be an advantage, i.e. it prevents the grantee from getting shady without the beneficiaries knowing it. Example....dad remarries, stepmom gets shady and spends money and dad's kids end up with nothing. It happened to my wife.

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• SO

  @socialpoint2415 · 9 months ago

  It keeps Medicaid from taking your home, for sure.

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• MR

  @MrJAbear1 · 11 months ago

  In the world of irrevocable trusts, a Trust Protector (sometimes called a Trust Advisor or Oversight Trustee, depending on the jurisdiction and how the document is worded).<br><br>The Trust Protector is an independent third party (often a trusted individual, like a family friend, advisor, or even a professional like an attorney or accountant) appointed specifically to oversee the trustee (the person or entity actually managing the trust&apos;s assets).<br><br>Depending on how the trust is drafted, they might also have authority to modify certain trust terms (e.g., for tax reasons or changing beneficiaries), veto distributions, or even direct investments. But their powers are always limited to what&apos;s spelled out in the trust document to avoid overreach, so their powers has to be written in at the beginning when the trust is formed.

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• IM

  @imanerd36 · 1 year ago

  It also needs to be considered that the benefit of a step-up plan at death can be lost with irrevocable trusts. There are some strategies that can be used to try to mitigate it (such as power of appointments, decanting provisions, etc.), but it can get very complex, and there are many possible pitfalls for something irrevocable.

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• JE

  @Jetman-j4o · 5 months ago

  Trust formation is rife with scams, not &quot;ripe&quot; with scams.

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• ON

  @oneofgodschildren · 1 year ago (edited)

  I&apos;m my now deceased fathers last living child and he had a great trust setup and his attorney was so helpful because he wanted to die at home and I moved in with him for the last year of his life. I&apos;m still healing physically. I worked in alot of nursing homes and I swore I&apos;d never put him in one. Period. ❤

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• CH

  @chris-wake-up · 1 year ago

  the Grantor has no ability to change an Irrevocable Trust once it is established. Modifications may only occur through the Trustee’s authority (if granted) or with the agreement of the beneficiaries, subject to legal conditions.

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• BO

  @Bondbeer · 1 year ago

  I am the successor trustee and sole beneficiary of his revocable living trust which became an irrevocable trust upon his passing. Best of both worlds as I have all the benefits noted without the drawback of needing a 3rd party trustee. The trust provides flexibility as to when to distribute assets and whether to pay tax at the trust or individual level.

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• PA

  @patrick39432 · 3 months ago

  I wish I had heard something about irrevocable trusts and Medicaid!

  2

• BR

  @Bridge2Health-123 · 1 year ago

  Both ways have their pros and cons. I like irrevocable trust because it protects you from lawsuits, creditors, etc.

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