Irrevocable Trusts in Missouri
An irrevocable trust is a permanent transfer of assets out of your name and into a trust managed for your beneficiaries. In exchange for giving up control, it can offer protections a revocable trust cannot.
Revocable vs. Irrevocable
| Revocable living trust | Irrevocable trust | |
|---|---|---|
| Can you change or cancel it? | Yes, anytime | Generally no |
| Who controls the assets? | You, as trustee | An independent trustee |
| Counted as your assets? | Yes | Generally no, once transferred |
| Main purpose | Avoid probate, plan for incapacity | Asset protection, tax planning, benefits planning |
Common Reasons to Use an Irrevocable Trust
- Estate tax planning. Moving assets out of your taxable estate.
- Asset protection. Shielding assets from future creditors or long-term care costs (see Medicaid Asset Protection Trust).
- Life insurance. Holding a policy so the proceeds stay outside your estate.
- Long-term control. Setting rules for how and when beneficiaries receive assets.
The Trade-Offs
Once assets are in an irrevocable trust, you generally can’t take them back or change the terms on your own. The trust may also have its own tax filing requirements. Because the decision is lasting, we walk through the tax and financial effects before anything is signed.
Why Legal Hero
Irrevocable trusts sit where law and tax meet. David Koonce’s training as both an attorney and a CPA helps make sure your trust works on both fronts.
Frequently Asked Questions
Can an irrevocable trust ever be changed?
In limited situations, depending on the trust terms and Missouri law. It should be planned as permanent.
Who should be the trustee?
Usually someone other than you, such as a trusted family member or a professional trustee.
Does an irrevocable trust avoid probate?
Yes. Assets held in the trust pass under its terms, not through probate.
Considering an irrevocable trust? Call Legal Hero at 314-816-3081.