If you are concerned about the future of your business assets or would like to ensure their proper distribution, consider establishing an irrevocable trust. This trust offers many applications to help you preserve and distribute your estate properly.
Unlike a revocable trust, an irrevocable trust cannot be modified by the grantor. Once an asset is placed in the trust, it cannot be revoked, and only the beneficiary can modify or terminate the trust. However, you can dictate the terms and conditions to ensure the trust is not misused. Assets in an irrevocable trust may include the business, investments, cash, and life insurance policies.
Many business owners choose an irrevocable trust for its estate and tax considerations. This type of trust removes the specified assets from the grantor’s taxable state by removing all incidents of ownership. It also frees the grantor from any tax liability associated with asset income. Most grantors cannot receive these benefits if they are also the trustees of their trusts; however, tax rules vary by jurisdiction.
We invite you to contact Corporate Capital at 855-371-0070 if you feel establishing an irrevocable trust in Nevada is right for your business. Our team of highly experienced professionals can help you secure the future wellbeing of your business and your family.