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With Irrevocable Trusts, It’s All About Who Has Control

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Editor’s note: This is part four of an ongoing series about using trusts and LLCs in estate planning, asset protection and tax planning. The effectiveness of these powerful tools — especially for asset protection and tax planning — depends very much on how they are configured to work together and whether certain types of control over assets and property are surrendered by the property owner. See below for links to the other articles in the series.

Revocable trusts and irrevocable trusts are created through contracts in which a person is appointed as “trustee” to hold title to property, with an obligation to use the property for the benefit of another person as the “beneficiary.” Both revocable trusts and irrevocable trusts are excellent estate planning tools, but by giving up additional control over assets in an irrevocable trust, an irrevocable trust can be a much more powerful tool for asset protection and tax planning.

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