Sophisticated estate plans often make use of irrevocable trusts in addition to a client's revocable living trust. During the estate planning process, B&M attorneys will evaluate a client's particular needs to determine what estate planning strategies are appropriate for you and your family.

A revocable trust is one in which the grantor (or the creator of the trust) retains a right to terminate the trust and reclaim its assets. An irrevocable trust, in contrast, is one in which the grantor retains no such right. As the name implies, once a grantor forms an irrevocable trust there is nothing the grantor can do to alter or amend the dispositive provisions for the beneficiaries. The grantor can make administrative changes affecting the management of the trust assets but cannot change the beneficiaries.

In a properly structured irrevocable trust, a grantor can effectively remove assets from his or her estate and pass them along to the next generation in a more tax efficient manner than he or she could by passing the assets at death. As a general rule, when transferring property into trust in an effort to accomplish this goal, the receiving trust must be an irrevocable trust. Typical irrevocable trusts include so-called Irrevocable Life Insurance Trusts, Grantor Retained Annuity Trusts and Qualified Personal Residence Trusts.

While not every client's particular circumstances will warrant the use of an irrevocable trust, in the right circumstances, use of such a trust can provide tremendous tax savings thereby preserving family wealth.