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The short answer is NO, no way, no how, not a chance. The long answer is how long ago was the irrevocable trust fund set up? And did the person setting it up know a lawsuit was on the way? In other words, does it look to a judge that money was purposely put in an irrevocable trust fund in order to avoid garnishment? If it was set up 12 or more months ago, it's as safe as money can be. If the whole thing looks suspicious, a judge could garnish but this almost NEVER EVER happens. There is one other issue, is it child support that would be the garnish? If so, I think a judge might ignore the fact that it's irrevocable. The courts always put an innocent child first so if it's unpaid support, it could be at risk. I have a few different irrevocable funds left by my dad. I was able to change the trustee (the person in charge of distributing the $$ in the fund to me because I was a minor) on one of them but only because that person agreed to step down. He was in prison for the felony of embezzling money..... FROM ME, and I still needed him to step down.
What else can I help you with?
Can you use the funds in your irrevocable trust to pay off your first mortgage?
Generally, funds in an irrevocable trust cannot be used to pay off a mortgage unless the trust document specifically allows for such distributions. The trustee must adhere to the terms set forth in the trust, which typically restricts access to the trust assets for the benefit of the grantor. If the trust permits, the trustee can manage the funds to pay off the mortgage, but this often requires careful consideration of the trust's purpose and the beneficiaries' interests. Always consult a legal professional for advice tailored to your specific situation.
Can money be withdrawn from an irrevocable trust?
Generally, money cannot be withdrawn from an irrevocable trust by the grantor or beneficiaries unless specific provisions allow for it. The assets placed in an irrevocable trust are meant to be managed according to the terms of the trust document, often for the benefit of the beneficiaries over time. However, trustees may have the discretion to distribute funds to beneficiaries based on the trust's guidelines. It's essential to consult the trust document and possibly a legal advisor for specific circumstances.
Can you add funds to an existing irrevocable trust?
Yes, you can add funds to an existing irrevocable trust, but it typically requires following specific legal procedures. This may involve the consent of the trustee and beneficiaries, and in some cases, a court's approval may be necessary. Additionally, the terms of the trust document should be reviewed to ensure compliance with its provisions. Always consult with a legal professional for guidance in such matters.
Under what circumstances can the IRS seize an irrevocable trust?
The IRS can seize an irrevocable trust if the trust owes unpaid taxes and the assets within the trust are considered part of the taxpayer's overall assets.
Is an irrevocable trust a living trust?
Yes. There are two types of trusts, living (intervivos) and testamentary. The living trust is created by a living person(called the settlor or trustor). The testamentary trust is created by the will of a deceased person. Living trusts are designated as either revocable or irrevocable depending on the authority of the settlor. If the settlor has the power to cancel or revoke the trust, it is a revocable trust. If the settlor has no power to revoke it then it is an irrevocable trust. Since the revocable/irrevocable distinction is determined by what the settlor can do while he or she is alive, the trust had to have been made during the settlor's lifetime. Hence, an irrevocable trust is a living trust. On the other hand a trust that is set forth in a person's will is revocable during the life of the testator simply by a modification of the will through a codicil. Once the testator has died that trust becomes irrevocable.
Can you write checks when money is in irrevocable trust?
No, you cannot write checks directly from an irrevocable trust since the trust's assets are owned by the trust itself and not by the individual who created it. The trustee manages the trust and has the authority to make distributions or pay bills on behalf of the trust, but the original grantor cannot access the funds directly. If you need to access funds, you would need to work through the trustee according to the trust's terms.
Can a trustee use the income from an irrevocable trust?
For personal use, only if they are the beneficiary. They are entitled to compensation for their work and to use funds for the benefit of the trust, but these are typically laid out in the trust itself.
How can you tell if a trust is irrevocable?
Generally, an irrevocable trust is titled 'irrevocable' or is designated as such somewhere in the first few paragraphs.
Can you use the funds in your irrevocable trust to pay off your first mortgage?
Generally, funds in an irrevocable trust cannot be used to pay off a mortgage unless the trust document specifically allows for such distributions. The trustee must adhere to the terms set forth in the trust, which typically restricts access to the trust assets for the benefit of the grantor. If the trust permits, the trustee can manage the funds to pay off the mortgage, but this often requires careful consideration of the trust's purpose and the beneficiaries' interests. Always consult a legal professional for advice tailored to your specific situation.
What is the difference between credit shelter trust and irrevocable trust?
What is the difference between credit shelter trust and irrevocable trust?
If timber is sold on land in irrevocable trust should it go into the irrevocable trust account?
no
Can money be withdrawn from an irrevocable trust?
Generally, money cannot be withdrawn from an irrevocable trust by the grantor or beneficiaries unless specific provisions allow for it. The assets placed in an irrevocable trust are meant to be managed according to the terms of the trust document, often for the benefit of the beneficiaries over time. However, trustees may have the discretion to distribute funds to beneficiaries based on the trust's guidelines. It's essential to consult the trust document and possibly a legal advisor for specific circumstances.
Can you add funds to an existing irrevocable trust?
Yes, you can add funds to an existing irrevocable trust, but it typically requires following specific legal procedures. This may involve the consent of the trustee and beneficiaries, and in some cases, a court's approval may be necessary. Additionally, the terms of the trust document should be reviewed to ensure compliance with its provisions. Always consult with a legal professional for guidance in such matters.
Can a testamentary trust be revocable?
No. A testamentary trust is irrevocable. The maker is deceased and cannot revoke it.No. A testamentary trust is irrevocable. The maker is deceased and cannot revoke it.No. A testamentary trust is irrevocable. The maker is deceased and cannot revoke it.No. A testamentary trust is irrevocable. The maker is deceased and cannot revoke it.
Can the funds in a Revocable Living Trust be garnished?
An indivisdual owes me money. He also owes two other individuals. Rather than pay us he is setting up a trust. I am trying to find out if this trust that he is just now setting up be garnished so that I can get my money back.
Is property held in an irrevocable trust protected in bankruptcy?
Can you protect your assets from bankruptcy by placing them in an irrevocable trust?
Is there a settlor in an irrevocable trust?
if a settlor of an irrevocable trust feels that he was not properly informed by his attorney of all the restrictions what can he do
