Irrevocable Trust

An irrevocable trust is distinct because the grantor relinquishes ownership and control.
This separation creates tax advantages and shields assets from personal creditors, lawsuits, or marital claims. The trust becomes its own legal “person,” with fiduciary duties owed by the trustee.

While a revocable trust provides flexibility, an irrevocable trust provides permanence.
The tradeoff is control: you lose the ability to modify terms freely, but gain legal and tax insulation.
SJKP LLP advises on when permanence outweighs flexibility—especially for high-value estates or those seeking long-term protection.

An irrevocable trust is ideal for individuals who:

- Hold estates near or above the federal estate tax threshold

- Own life insurance policies or investment portfolios requiring protection

- Wish to shield family assets from creditors or lawsuits

- Plan to establish charitable or multigenerational trusts

By removing assets from the taxable estate, a trust reduces exposure to federal and state estate taxes.
We tailor structures such as Credit Shelter Trusts (CSTs) or Generation-Skipping Trusts (GSTs) to maximize available exemptions and maintain IRS compliance.

Because the grantor no longer owns the assets, they are generally out of reach from personal creditors or lawsuits.
SJKP LLP ensures transfers comply with state fraudulent conveyance laws while preserving maximum protection for beneficiaries.

An Irrevocable Life Insurance Trust (ILIT) removes life insurance proceeds from the taxable estate.
This provides liquidity for estate expenses or family needs without inflating estate value. We assist with policy assignments, premium structures, and Crummey powers administration.

By removing assets from the taxable estate, a trust reduces exposure to federal and state estate taxes.
We tailor structures such as Credit Shelter Trusts (CSTs) or Generation-Skipping Trusts (GSTs) to maximize available exemptions and maintain IRS compliance.

Because the grantor no longer owns the assets, they are generally out of reach from personal creditors or lawsuits.
SJKP LLP ensures transfers comply with state fraudulent conveyance laws while preserving maximum protection for beneficiaries.

An Irrevocable Life Insurance Trust (ILIT) removes life insurance proceeds from the taxable estate.
This provides liquidity for estate expenses or family needs without inflating estate value. We assist with policy assignments, premium structures, and Crummey powers administration.

Each trust begins with a detailed assessment of goals—tax minimization, asset protection, or legacy planning.
We draft instruments that clearly define trustee authority, beneficiary rights, and distribution standards.

A trust is effective only when properly funded.
Our attorneys coordinate title transfers, asset retitling, and beneficiary designations to ensure ownership legally vests in the trust. We work closely with accountants and financial advisors for seamless execution.

After creation, trustees must follow fiduciary obligations and reporting requirements.
SJKP LLP provides counsel on IRS Form 1041 filings, annual accountings, and beneficiary communications to ensure ongoing legal and tax compliance.

Transferring assets into an irrevocable trust is considered a completed gift.
We prepare gift tax filings (Form 709) and ensure proper use of lifetime exclusions.
Trust income may be taxed at the trust level or passed through to beneficiaries, depending on distribution strategy.

Properly funded irrevocable trusts remove assets from the estate tax base, significantly reducing taxable value.
We design layered trust strategies—such as marital deduction trusts or GRATs—to optimize exemption use and avoid double taxation.

Trustees owe duties of loyalty, prudence, and impartiality to all beneficiaries.
We advise fiduciaries on governance best practices, documentation, and liability mitigation to maintain compliance and prevent disputes.

Yes, but only under limited circumstances.

Some states allow trust decanting or modification by consent of all beneficiaries.
Our attorneys evaluate whether state law or court approval permits amendment without jeopardizing tax benefits.

If income is distributed, beneficiaries are taxed.
If retained, the trust pays taxes as a separate entity—often at higher rates.
We help trustees balance distributions to minimize total tax exposure.

Yes, generally.

Assets properly transferred before litigation or marital claims are well-protected.
We ensure all transfers meet timing and intent requirements to withstand legal scrutiny.