Irrevocable Living Trust

Advantages

• You may save taxes on capital gains on property placed in a charitable remainder trust.
• You see your trust work.
• You observe your trustee in action.
• You avoid probate and court costs.
• It is a good way to pass property to charity.
• You save any taxes there may be on the property going to charity on your death.
• With irrevocable charitable remainder trusts created while you are living, you can get an income tax deduction during your life.

Disadvantages

• Property must be transferred, so there are initial costs and energy in setting up the trust.
• You lose all control over the property with most irrevocable trusts.
• It requires annual fiduciary accounting and possible tax returns.
• It may require payment of annual trustee fees.
• There may be fees at the time of trust termination.
• You can’t change your mind and get the property back.